8 Reasons Why The Imminent Financial Crisis Will Be Much Worse Than 2008 and 2000 And It Is Going to Change Our Financial Universe Forever
InvestmentWatchblog.com
December 11th, 2015
Big trouble is ahead…
High-yield debt fund blocks investors from withdrawing funds as junk bonds swoon
Third Avenue seeks orderly liquidation of fund that had $789 million in assets
A high-yield mutual fund is blocking investors from withdrawing their money, in a rare and jarring move amid a severe downturn in below-investment-grade and distressed debt.
The move at Third Avenue Focused Credit Fund is intended to facilitate an orderly liquidation of the fund, which recently had $789 million in assets, down from more than $2.4 billion earlier this year. It comes amid redemption requests at the fund and reduced liquidity in some parts of the bond market.
Those two factors made it “impractical” for the fund to pay off departing investors without selling holdings at fire-sale prices “that would unfairly disadvantage the remaining shareholders,” David Barse, chief executive of Third Avenue Management LLC, wrote in a letter to shareholders dated Wednesday.
Charles Gave: “I Cannot Remember A Time When Less Thinking Has Ever Been Done In The Financial Markets”
The Rest…HERE
