The Accidental Distressed Debt Fund

Is the Third Avenue Focused Credit Fund the canary in the credit coalmine or a special bird that made the mistake of wrapping a bunch of distressed assets in a liquid mutual fund wrapper? That is the question currently facing bond investors nervous that the recent sell-off in credit could spread to other funds that specialize in buying the high-yield or junk-rated bonds sold by companies with more fragile balance sheets.

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