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Wall Street fund shutdown sparks fears of bond market crisis
The Sunday Times
Kathryn Cooper
12/13/2015
Excerpt:
INVESTORS are fleeing the bond market after the shutdown of two high-profile funds intensified fears of a fresh credit crisis.
The closure of the two New York funds last week spooked investors who were already fretting about the expected increase in US interest rates — the first for a nearly a decade.
Third Avenue Management barred investors from making withdrawals from a $788m (£518m) fund that invests in company debt, and Stone Lion Capital did the same with a $400m credit fund.
Third Avenue is the biggest retail fund to shut its doors since the 2008 crash, raising fears of a rout in the riskier parts of the bond market.
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View the complete article, including image, at:
http://www.thesundaytimes.co.uk/sto/...cle1644407.ece
The Sunday Times
Kathryn Cooper
12/13/2015
Excerpt:
INVESTORS are fleeing the bond market after the shutdown of two high-profile funds intensified fears of a fresh credit crisis.
The closure of the two New York funds last week spooked investors who were already fretting about the expected increase in US interest rates — the first for a nearly a decade.
Third Avenue Management barred investors from making withdrawals from a $788m (£518m) fund that invests in company debt, and Stone Lion Capital did the same with a $400m credit fund.
Third Avenue is the biggest retail fund to shut its doors since the 2008 crash, raising fears of a rout in the riskier parts of the bond market.
...............................................
View the complete article, including image, at:
http://www.thesundaytimes.co.uk/sto/...cle1644407.ece