/biz/ - Business & Finance

"Mutual funds invested in assets like bonds and property should alter their pricing under stressed conditions in order to halt “fire sales” like those witnessed after the Brexit vote and protect long-term customers, according to a paper from the UK’s financial watchdog."

"The occasional paper, published on Wednesday, threw its weight behind the “swing” and “dual” pricing employed by bond funds suffering high outflows, which it said worked to “significantly reduce redemptions...during stress periods” and stopped investors stampeding for the door."

"The research follows growing concerns from regulators about the way mutual funds invested in hard-to-sell assets like bonds and commercial property cope when large volumes of investors try to sell at once, as witnessed in the wake of the UK’s Brexit vote in 2016 and after the 2008 financial crisis. "

https://archive.fo/KjJpv