U.K. Property Fund Suspensions Send a Warning to the Junk Bond World
Junk bond funds may pose a greater liquidity risk than those invested in U.K. commercial real estate.
U.K. Property Funds Freeze About $12 Billion
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Investors in U.K. commercial real estate just touched a nerve.
In pulling their money out of property funds at such a rapid pace four asset managers froze withdrawals this week, the investors showed how the cost of Brexit is spreading. They also tapped into one of the biggest fears of bond market observers: a mismatch between the liquidity of investment funds and their assets.