Junk Bonds Are Tanking and Icahn Says Meltdown `Just Beginning'
- Third Avenue freeze on redemptions sends chill through market
- Investors wonder: `Can this happen to the next-worst fund?'
Major Sell-off in Junk Bonds, Crisis in High Yield Credit
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A day after a prominent Wall Street firm shocked investors by freezing withdrawals from a credit mutual fund, things only got nastier in the junk-bond market. Prices on the high-risk securities sank to levels not seen in six years and, to add to the growing sense of alarm, billionaire investor Carl Icahn said the selloff is only starting.
“The meltdown in High Yield is just beginning," Icahn, who’s been betting against the high-yield market, wrote on his verified Twitter account Friday.