Thursday, Aug 09, 2007
BNP Paribas SA, France's biggest bank, said it froze three asset-backed securities funds because it's no longer possible to ``fairly'' value their holdings, as concern over U.S. subprime mortgage losses roils credit markets
bloomberg.com: BNP Paribas Freezes Asset-Backed Funds Amid Subprime Concern
The complete absence of liquidity in certain market segments of the U.S. securitization market has made it impossible to value certain assets fairly regardless of their quality or credit rating,'' the Paris-based company said in an e-mailed statement today.
Late payments on U.S. subprime mortgages to borrowers with poor credit histories are at the highest since 2002, driving down the value of bonds backed by home loans and causing turmoil in credit markets. BNP Paribas will temporarily suspend the calculation of net value for the funds, and halt redemptions and new investments. The funds affected are called Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia.
Posted by chris :-)) @ 07:56 AM (108 views) Add Comment
1 Comment
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1. Pelethar said...
Dude - stop flooding the blog with all this semi-relevant stuff. You're ruining it.