Last week, Third Avenue Management LLC blocked investors from redeeming positions from the $789 million Third Avenue Focused Credit Fund (TFCIX), warning investors that sellers may not receive all their money back for months, the Wall Street Journal reported. The fund provider contends that the poor bond-market trading conditions made it nearly impossible to raise the necessary cash to meet redemptions without resorting to a fire sale.
“As the drop in high-yield, or junk, bonds, claimed its biggest victim since the 2008 financial crisis, BlackRock‘s Peter Fisher said Monday he does not see the risky end of the corporate fixed income market sinking the overall U.S. economy like the bust in subprime mortgages did during the Great Recession,” reports CNBC.
iShares iBoxx $ High Yield Corporate Bond ETF
Tom Lydon’s clients own shares of HYG and JNK.