Withdrawals Denied: Bond Fund Manager Freezes Redemptions At Bond Funds

Sharing is Caring!

from Zero Hedge

In 2015, at the peak of the commodity-crush induced wave of energy defaults, a high-yield bond fund at Third Avenue in froze withdrawals to avoid having to divest holdings at fire-sale prices. That set off a chain of events that rattled credit markets and deepened one of the worst selloffs in years.

READ  The Reaping! Fed’s Overnight Reverse Repo Hit New Record High Of $497.4 Billion (Fed Funds Effective Rate Only 6 Basis Points) 10Y Treasury Auction Sees High Yield Drop Below 1.5%

Fast forward to today, when Swiss multi-billion asset manager, GAM Holdings announced it has frozen withdrawals at some of its bond funds after a surge in redemptions from clients who sought withdraw their money following the suspension of manager Tim Haywood, the latest in a series of setbacks that sent the company’s shares into a tailspin.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.