FSA probes corporate bond fund liquidity

The regulator has given groups until 16 July to give feedback on the liquidity of their funds as it is concerned liquidity in the market is too low, Investment Week understands. Bond funds have seen significant inflows over the past few years as investors shun equities in search of lower risk options. The IMA has reported the Corporate Bond sector has been the best selling sector for 10 out of the last 12 months. Richard Woolnough's M&G Optimal Income fund saw inflows of £1.8bn in the first six months of this year alone, causing assets under management to swell to £7.7bn. At the sa...