FYI: Late last month, the Securities and Exchange Commission proposed a new rule that would overhaul how funds manage liquidity risk, or the potential that their investors won’t be able to cash out promptly at the prices they’ve been led to believe their fund holdings are worth.
The good news about the rule, which after some tinkering is likely go into effect next year, is that it should make funds a little safer, more transparent and more equitable.
The bad news is that the new regulations might well make most fund managers even more chicken-hearted than they already are — and a rare few into bigger risk-takers than ever
Regards,
Ted
http://blogs.wsj.com/moneybeat/2015/10/02/new-liquidity-rules-will-make-fund-managers-more-chicken-hearted/tab/print/
