open-ended bond funds

European emerging-market bond funds pose limited contagion risk to the broader financial system in light of the conflict in Ukraine, rating agency Fitch said on Monday. The funds have low exposure to Russia, Ukraine and Belarus, which should limit the risk of a large increase in redemptions. 

International financial regulators, considering lessons learned from defusing systemic risks in the banking sector, have set their sights on similar risk tools to reduce the systemic risks associated with open-ended bond funds. An industry representative claims that such macroprudential tools won’t work as regulators don’t fully understand how fund management works. The markets, meanwhile, have little faith that regulators can effectively resolve this daunting conundrum.