BNP suspends funds after subprime shock BNP Paribas bacame the latest European casualty of the fallout from the meltdown in the US subprime mortgage market after announcing it had suspended three of its funds because jitters among its investors. The French bank said in a statement that the decision to suspend Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia funds followed the "complete evaporation" of liquidity. It said the valuation of the funds would resume as soon as liquidity returned to the market and added that in the continued absence of liquidity, additional information on the envisaged measures would be communicated to investors within a month. A spokeswoman for BNP could not immediately comment on the latest net asset value of the three funds. BNP shares fell 2.4 per cent in early trading in Paris and sent markets around Europe lower as fears about the scale of the losses in the banking sector mounted.
BNP Paribas bacame the latest European casualty of the fallout from the meltdown in the US subprime mortgage market after announcing it had suspended three of its funds because jitters among its investors.
The French bank said in a statement that the decision to suspend Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia funds followed the "complete evaporation" of liquidity.
It said the valuation of the funds would resume as soon as liquidity returned to the market and added that in the continued absence of liquidity, additional information on the envisaged measures would be communicated to investors within a month.
A spokeswoman for BNP could not immediately comment on the latest net asset value of the three funds.
BNP shares fell 2.4 per cent in early trading in Paris and sent markets around Europe lower as fears about the scale of the losses in the banking sector mounted.
Kill the markets to asuage the credit crisis? "Life shrinks or expands in proportion to one's courage." - Anaïs Nin
