Many invest in Treasury notes and government agency bonds, which are backed by the full faith and credit of the U.S. government, meaning investors will be paid back in full.

NPR: Lehman Fallout Hits Money Market Fund

The Templeton Global Bond Fund (TPINX) invests in government and agency bonds from both developed and emerging economies.

FORBES: Trade Currencies Like Soros

Cutwater only has about 10% of client assets in Treasuries, and that includes some accounts like municipalities that can only invest in government or agency bonds.

FORBES: Surprise! Junk Debt Is Coming Back Into Style

Indeed, spotting mispriced securities seems to be the financial world's latest parlour game: Royal Bank of Canada was this week forced on to the back foot after one of its traders told a newspaper that it had mismarked government-agency and corporate bonds.

ECONOMIST: If so, who is the Titanic?

No matter how much Barack Obama huffs and puffs, a ratings agency's job is to rate bonds, including government ones, and to speak out when it thinks the least risky asset in the world has become riskier.

ECONOMIST: America��s downgrade

Ironically, the turning-point came earlier this year, when it was suggested that, as the supply of Treasury bonds dwindles thanks to the federal government's surplus, mortgage-agency debt could replace them as the benchmark used for pricing other fixed-income securities.

ECONOMIST: Homesick blues