Liquidity shortage hits BNP funds

The fund management arm of French bank BNP Paribas has suspended redemptions on three of its funds: Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia.

In a statement released by BNP Paribas Investment Partners, the manager cites the complete evaporation of liquidity in US securitisation, which it says has "made it impossible to value certain assets fairly regardless of their quality or credit rating".

As a result, the net asset value calculation for the funds has also been s

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