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

peshkov - stock.adobe.com

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.