"Morgan Stanley's money market funds were hit by major redemptions in September, and the firm stepped in to fund half of the withdrawals itself, presumably out of a view that selling the underlying fund assets into a deteriorating market would only lead to distressed prices. But one has to wonder whether the positions that Morgan Stanley effectively paid out at par in aggregate will be worth that any time soon. It also appears the firm parked some of these instruments with the newfangled government facilities on offer."

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