Time Horizons, Liquidity Mismatches And Investor Expectations

Time Horizons, Liquidity Mismatches And Investor Expectations by StockResearch

by Jeffrey Miller, Partner, Eight Bridges Capital Management

Can you teach me 'bout tomorrow
 And all the pain and sorrow running free
 'Cause tomorrow's just another day
 And I don't believe in time

• Hootie & The Blowfish - Time

Just a few days after writing our last letter about the warning sign that the high-yield market was flashing, Third Avenue went and closed an open-ended mutual fund to redemptions because it, essentially, couldn’t find reasonable bids for its bonds. In the aftermath, some commentators have noted that this fund was an exception, because its portfolio was particularly risky, made up of really low quality bonds, and that it wasn’t symptomatic of larger...