BoE: Fund liquidity mismatches could 'amplify shocks in the financial system'
May also impact the provision of finance to the economy
Liquidity mismatches in open-ended funds, such as that seen in the property sector and in the case of the Woodford Equity Income fund, poses a threat to financial stability and could “amplify shocks in the financial system”, the Bank of England (BoE) has warned.
In its annual Financial Stability Report, published on Monday (16 December), the BoE said such mismatches, which is not unique to "any single market or fund type", could lead to forced sales which may...
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