How easy is it to unwind $7B of investments?
GAM Holding AG should be applauded for moving swiftly to resolve the crisis engulfing its 7.3 billion Swiss francs ($7.3 billion) of unconstrained absolute return bond funds. But investors are about to learn how easy – or hard – it is to find buyers for such a large group of investments at acceptable prices. It could deliver a costly lesson in the risks of chasing returns in the current less-than-liquid environment.
7701 Las Colinas Blvd., Ste. 800, Irving, TX 75063