The Traderszone Network

Published in TZ Latest News 17 December, 2015 by The TZ Newswire Staff

Yellen addresses mutual fund failure, but fire-sale issues remain

After the Federal Reserve announced it would raise interest rates today, Federal Reserve Chairwoman Janet Yellen addressed concerns that more mutual funds might fail. Last week, Third Avenue Focused Credit Fund announced it would suspend investor redemptions for a year after it suffered nearly a 50% loss in value since June 2014. In a Yahoo Finance exclusive, it was recently revealed that $27 billion invested over 29 mutual funds may also be at risk, with two of them suffering larger losses than Third Avenue.