Scandal Follows Crisis After 35 Bond Funds Frozen in Sweden
- Savings economist says some fund practices are ‘reprehensible’
- FSA sees reason to analyze what happened, look for improvement
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The liquidity crunch that shuttered 35 bond funds in Sweden last month has revealed some disturbing truths about the country’s credit market.
As the spread of Covid-19 across Europe triggered a sell-off in corporate bonds, investors keen to withdraw their savings in Sweden suddenly learned they couldn’t.