Esma: debt, real estate funds no threat to financial stability
Although there is some room for improvement, liquidity risks in corporate debt and real estate investment funds do not pose any substantial risk for financial stability, the EU’s top financial securities markets regulator said on Wednesday.
'Real estate daily dealing soon a thing of the past'
In a lot of funds investing in illiquid assets, such as property, daily dealing is likely to disappear. “The idea that you can have property in a fund you can buy or sell shares in on a daily basis has been exposed to be a lie.”
‘Liquidity crisis threatens bond market’
A sudden liquidity drought is a serious threat to investors in European corporate bonds, so warns Ludovic Colin, manager of the Vontobel Bond Global Aggregate Fund. It means corporate bond markets on the continent are vulnerable to a correction.