Index fund providers and other big securities lenders that have had trouble redeeming cash collateral from securities lending operations were offered a glimmer of hope in the Federal Reserve’s expansion of its money market investor funding facility — but just a glimmer.

Institutional investors are fleeing to the relative safety of stock index funds, shunning active managers, according to managers and consultants. But whether the shift to passive will last is questionable.

By not straying from her core investment philosophy that bonds are the anchor for a portfolio, Christina Seix, founder of the fixed income shop that bears her name, suffered a bit in 2005 and 2006 but in today’s climate, she’s shining bright.

Institutional investors — when it came to risk management — took their eye off the ball, even after the tech-stock bubble burst in the early part of the decade. That's according to a blue chip panel brought together by Pensions & Investments.

Shares of publicly traded money managers are down as much as 87% year to date through Dec. 1 but investors have little appetite to pick up these one-time Wall Street darlings despite their bargain-basement prices.

Money managers said they have laid off or plan to lay off nearly 3,600 staffers as a result of financial market swoons.

SSgA's 130/30 assets plunged 61% in the six-months ended Sept. 30, causing the market leader to fall to fourth place in P&I's semi-annual rankings of these long/short strategies while JPMorgan Asset Management jumped to the top spot.