FYI: Were a BlackRock (BLK) mutual fund to be hit with waves of withdrawal requests, the world’s largest asset manager could borrow from separate BlackRock funds to satisfy redemptions.
This is a new development because Securities and Exchange Commission just okayed BlackRock’s InterFund Program, which permits a fund manager to borrow up to 10% of assets without collateral from another fund, reports Trevor Hunnicutt at Reuters. Other fund companies including Vanguard Group can do this already, but Hunnicutt notes that this approval comes at a time when securities regulators are particularly focused on fund liquidity.
Regards,
Ted
http://blogs.barrons.com/focusonfunds/2016/09/07/sec-oks-blackrock-plan-for-fund-to-fund-borrowing/tab/print/
