Sentinel Management Group, a $1.5 billion money market fund in Northbrook, IL, has caused the market to spring another leak. Enclosed is the entire text of the letter it issued to its investors yesterday:

"SENTINEL
SENTINEL MANAGEMENT GROUP, INC
________________________
EDENS CORPORATE CENTER
650 DUNDEE ROAD, SUITE 460
NORTHBROOK, ILLINOIS 60062
(847) 412-4400
FAX (847) 412-4409

August 13, 2007

Dear Client:

As you undoubtedly know, the credit markets, along with most other markets, have experienced a liquidity crisis in the past several weeks. Investor fear has overtaken reason and has induced a period in which most securities have simply ceased to trade. We've all read the stories about one hedge fund or another suffering losses related to subprime exposure and closing down or being rescued.

This fear, while warranted in some cases, has spilled over into the rest of the credit market and liquidity has dried up all over the street. In addition, investment banks and securities firms are stuck with LBO deals they've already entered into but cannot find buyers for the bonds so must inventory them themselves.