Money market funds' conservative positioning means credit quality and portfolio stability will remain resilient in 2013, despite ongoing credit and macroeconomic pressures, says Moody's Investors Service in its industry outlook.

"For 2013, we expect the credit environment to remain challenging in light of the continued negative pressures on sovereigns and banks," said Henry Shilling, a Moody's senior vice president and co-author of the report. "While some negative economic scenarios, especially with respect to the eurozone and U.S. budget negotiations, may result in additional money market fund stress, active portfolio management is a key mitigating factor in our money market fund analysis."

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