Credit Suisse Shuttering Bond Fund

Here is a small reminder that we are not quite out of the woods yet.

MarketWatch is reporting that Credit Suisse is shutting down a bond fund as illiquidity in the bond markets has made it impossible to meet redemption requests.

The bank said it will close the CS Bond Fund (Lux) Target Return because the lack of liquidity in the market has made it impossible to sell assets to meet redemption requests, Reuters reported.
“In the course of the last days and weeks investors have significantly sold assets in a flight to liquidity. The volume of redemptions has meant that many subfunds have become too small to operate on practical and economic terms,” Credit Suisse said in a statement.

The fund produced stable returns for the first four years following its inception in 2003 but the closure became necessary in the current “absolutely exceptional” circumstances.”

Who’s next?

Tom Lindmark

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