Baltimore-based Legg Mason Inc. is undertaking "the biggest bailout by a money manager related to debt sold by structured investment vehicles," Laura Smitherman reports in a story today
. And yes, this does have something to do with housing:
Structured investment vehicles sold commercial paper - some backed by subprime mortgages - that lost value as investors feared the debt would be affected by rising home-loan defaults.
Structured investment vehicles, the story notes, "were popular investments for money funds looking to increase yields" -- including ones at Legg. The company says it has moved $1.1 billion into two foreign money market funds to avoid losses.
"These actions are further evidence of our continuing support of our liquidity products in light of current unprecedented market conditions," said Chairman and Chief Executive Officer Raymond A. "Chip" Mason in a statement.