Funds that promise investors daily liquidity for assets that fundamentally aren't liquid are "built on a lie", Bank of England Governor Mark Carney has said.
Speaking to a Treasury Select Committee hearing on Wednesday, Carney said the structure of the open-ended funds "leads to an expectation of individuals that is not different than having money in a bank". Carney has previously talked about the systemic problems stemming from the issue, with the prospect that funds owning illiquid assets could experience the equivalent of a run on the banks seen during the financial crisis. He re-iterated that fear, adding: "On this broader systemic point around the structure of these funds, this is a big deal. You can see something that could be system...
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