Monday, December 14, 2015

Mutual fund implodes, blocks investors from their money

News
Imploding mutual funds will increase in frequency once the Fed starts raising rates. The unwinding of the carry trade - short the US dollars and long second tier currencies will fuel not only a recognizable panic but also a lot of 'unplanned' or force liquidations as liquidity dries up and leaders point fingers. Now is the time to understand where your money is parked.



Headline: Mutual fund implodes, blocks investors from their money

A mutual fund focused on the riskiest corners of the junk bond market blew up this week and blocked investors from getting their money back.

The Third Avenue Focused Credit Fund invested in distressed debt of companies that were close to defaulting on their loans and ones that already had.


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