Which "Junk" Fund Liquidates Next? After Third Avenue, Here Are The Unusual Suspects

The shocking fate of Third Avenue's junk bond fund, which as we reported yesterday, announced it would gate investors and proceed to liquidate over the next several months as it sought to unwind its illiquid positions at a leisurely pace "without resorting to sales at prices that would unfairly disadvantage the remaining shareholders" is made just modestly less shocking when one considers that the $789 million fund (down from $2.4 billion earlier this year) was the worst performing YTD fund tracked by Morningstar, tumbling 27% YTD, but only after placing in the top 1%-percentile in 2013.

Rand Crashes, EM Stocks Plunge As Trader Warns, Absolutely Ignore The "It's-Priced-In" Meme

Extending its losses from yesterday, following the untimely sacking of a fiscally responsible finance minister, South Africa is in freefall - Rang crashed above 16 (record lows), stocks have crashed, and bond yields exploded:

 

China's Yuan hit a fresh 4 year low...

 

 

EM Stocks are plunging...

 

And of course US High Yield Bonds...

 

Dow Dumps Over 300 Points From Thursday Highs After IEA Warns Oil Glut To Worsen

'As goes oil, so goes the US equity market' appears to bethe new mantra. Just as yesterday's pump-and-dump tracked oil, so in the pre-market, WTI Crude plunged back to fresh 7-year lows after IEA warned that the oil glut will worsen, with prices lower for longer as demand remains subdued through at least 2017. This in turn sent US equities tumbling with Dow futures down 200 points (down 330 from Thursday highs).

Spot the difference...

 

Putin Orders Military To "Immediately Destroy" Any Threat To Russian Forces

Russian President Vladimir Putin has ratcheted up the rhetoric in what appears to be one step closer to the potential for direct conflict with The West. While not detailing 'who' he was focued on, amid the obvious Turkey-Russia tensions, Putin told a session of the Defense Ministry's collegium that "I order to act extremely tough. Any targets that threaten Russian forces or our infrastructure on the ground should be immediately destroyed."

Frontrunning: December 11

  • Futures down sharply as oil hits seven-year low (Reuters)
  • Oil slides to new seven-year low as IEA warns of worse glut (Reuters)
  • But... but... they all said... Cheap Oil Gives Little Help to U.S. Spending (WSJ)
  • Disappearances in China Highlight Ruling Party Detention System (BBG)
  • China’s Credit Rebounds as Stimulus Helps Boost Loan Demand (BBG)
  • Junk Fund’s Demise Fuels Concern Over Bond Rout (WSJ)
  • No cheer as China yuan hits four-and-a-half-year low, oil at seven-year low (Reuters)
  • Fixing the Falling Yuan (WSJ)

Pages