WSJ: High-Yield-Debt Fund Blocks Investors From Pulling Out Money
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.
These couple days will probably be last chance to buy cheap deep out of the money puts on HYG and JNK. I got mine a month ago and the price has fallen terribly since then, time to double down.
ReplyDeleteThis commodity collapse is epic. BTU market cap $200 mil, who needs coal? Oil below $40, who needs that crap? We've got smart phones and other gizmos!