Dead Canary: Third Avenue Focused Credit Liquidates

Not a good sign for the credit market.

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.

1 comment:

  1. 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.

    This 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!