Junk Bonds Are Tanking and Icahn Says Meltdown `Just Beginning'

  • Third Avenue freeze on redemptions sends chill through market
  • Investors wonder: `Can this happen to the next-worst fund?'

Major Sell-off in Junk Bonds, Crisis in High Yield Credit

A day after a prominent Wall Street firm shocked investors by freezing withdrawals from a credit mutual fund, things only got nastier in the junk-bond market. Prices on the high-risk securities sank to levels not seen in six years and, to add to the growing sense of alarm, billionaire investor Carl Icahn said the selloff is only starting.

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