Originally Posted by gcgang
No Exit From Bond Funds? - Barron's
This weeks Barron's mentions there is talk of restricting liquidations of bond funds. The fear is that massive redemptions could wreck everything, I guess.
FYI- this issue also ranks the best annuities, something everyone here is most definitely interested in. Lol.
"To Dan Fuss, the longtime chief investment officer at Loomis Sayles, the exit-fee story seemed like a "trial balloon." But, he added, "from a practical point of view, I don't think it has a snowball's chance in hell, given the resistance from the retail distributors of mutual funds."
This could always be avoided by using ETFs, unless our marvelous government is going to insert themselves into that also.
Still, I think the underlying issue is a real sleeper. It is hard for outsiders to know just what the depth and liquidity in any of these bond markets is. Just because we have a liquid vehicle doesn't make the investment liquid.