A decade after BNP Paribas fund freeze, liquidity still haunts ABS

Crisis Fotolia right side
By Sam Kerr
09 Aug 2017

BNP Paribas froze three hedge funds that had invested in subprime mortgages on August 9, 2007. Widely regarded as one of the opening events of the global financial crisis, it stands as a grim reminder and a warning to the market of what can happen when liquidity collapses.

Recalling the early days of the crisis, a bank analyst said that people often fail to realise that ABS actually performed better than the narrative of that time suggests. He added that realised losses in the sector were minimal, especially on the most senior tranches. 

But he noted ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access: subs@globalcapital.com

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: subs@globalcapital.com or find out more online here.