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Legg Mason lowers structured investment vehicle exposure to 3.2 percent of liquidity assets

Legg Mason lowers structured investment vehicle exposure to 3.2 percent of liquidity assets

Legg Mason Inc. said Friday it lowered its exposure to structured investment vehicles to 3.2 percent of its total liquidity assets by cutting securities held by two of its non-U.S. liquidity funds.
The asset management company said its liquidity business had $164 billion (euro111.63 billion) of assets under management as of Dec. 21.
About 1.1 percent of the liquidity assets are invested in bank-sponsored SIVs.
Legg Mason said it is enhancing the liquidity of the two funds in light of current market conditions and the composition of their portfolios to provide further support for one of the fund's portfolio ratings. Legg Mason stressed that neither fund, nor their shareholders, incurred any loss in connection with the transactions.
Legg Mason reduced a Dublin-based fund's SIV holdings by brokering a total return swap with a bank, providing the fund with $890 million (euro605.77 million) in cash. Legg Mason also purchased $132 million (euro89.84 million) of SIV securities from the fund.
For the second fund, Legg Mason bought $99 million (euro67.38 million) of conduit securities issued by Canadian asset backed commercial paper issuers.
The company expects a quarterly charge of $22.2 million (euro15.11 million), or 15 cents a share, as a result of its liquidity fund support, including moves announced Friday.


Updated : 2021-05-09 16:33 GMT+08:00