Third Avenue's Now-Frozen Fund Called Liquidity Fears a ‘Myth’

  • Manager, in 2012, played up fund's small size and cash cushion
  • Fund liquidating amid troubles in high-yield debt market

How Will Markets React to the Third Avenue Freeze?

Third Avenue Management LLC rattled credit markets this week when it said that a lack of liquidity had forced it to halt redemptions in its junk-bond mutual fund. Not so long ago, the fund was telling investors that concerns about illiquidity in these markets were a “myth.”

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