High yield sell-off feared after US firm freezes credit fund

Third Avenue froze withdrawals from $788m vehicle

Laura Dew
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The freezing of assets by US firm Third Avenue Management in its credit fund has led investors, including billionaire Carl Icahn, to fear a "meltdown" in the high yield sector.

Last week, Wall Street firm Third Avenue Management imposed a freeze on withdrawals from its $788m high yield bond fund, shocking the market. The firm said it took the action to avoid fire sales, following a warning from the regulator that some funds were investing in illiquid assets, Bloomberg reports. However, the move has caused panic in the market, with Icahn, who has built a reputation as a billionaire activist investor and hedge fund manager, tweeting in reaction: "The meltdown in high yield is just beginning." Aberdeen's Gilbert urges regulators to scrap daily fund liquidity...

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