Credit Gets Crunchy

ZH: Another Trade Finance Domino Falls

While not directly linked to Greensill's collapse, Mauritius-based Barak Fund Management has announced that is preparing to restructure its $1 billion money-pool of highly illiquid assets.

Bloomberg reports that the fund is seeking investor approval to move ahead with a plan that involves spinning off illiquid holdings into separate vehicles for clients who want to hold on to their assets. The move follows the fund’s decision a year ago to freeze its money pool as some investments became trapped in a series of hard-to-sell assets across the continent of Africa.