Broader risks seen in event of junk bond funds fire sale-N.Y. Fed blog

February 19, 2016 5:45 PM

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NEW YORK Feb 19 If junk bond funds embark on a fire sale of assets to meet massive redemption, it could spread across markets hurting other bond and stock funds, according to a blog from the New York Federal Reserve published on Friday.

But the spillover effect would be modest and not result in a systemic event.

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