FYI: (Click On Article Title At Top Of Google Search)
One of the conundrums facing income-seeking investors is that some of the highest-yielding securities are the toughest to buy and sell. Investors get paid a premium for holding illiquid assets such as private loans, structured credit, or commercial real estate debt. But regulations from the Securities and Exchange Commission make significant allocations to such asset classes impossible in ordinary mutual funds.
The SEC is concerned with liquidity, and rightly so. When illiquid markets head south, investors exit the fund and the portfolio manager can’t sell the underlying securities fast enough, let alone at a reasonable price. This happened last December, when Third Avenue Focused Credit halted withdrawals after the distressed credits it held proved nearly impossible to sell.
Regards,
Ted
https://www.google.com/#q=Interval+Funds:+Making+the+Best+of+Illiquid+Assets+Barron's
