A Warning To High Yield Investors From Billionaire Carl Icahn

Billionaire activist investor Carl Icahn tweeted that a meltdown in high yield was just beginning.For example,Third Avenue Management is liquidating its Focused Credit Fund and preventing withdrawals,promising to distribute the bulk of investors' money on 16 December,and put the rest in a trust that will pay them interest and make distributions to them until its liquidation costs are covered.The fund was liquidated because so many investors were redeeming their shares at once,Third Avenue said in a letter to the fund's investors.*
We did have that Seeking Alpha conference,Mr.Icahn told CNBC.I warned then it's simple and self-evident that the high yield market is just a keg of dynamite that sooner or later will blow up.The etfs of BlackRock and other companies are very dangerous because there's no liquidity behind these etfs.I think that any person that goes into this should basically be warned.You're starting to see the danger that is manifest now that there is no liquidity for these high yield bonds.They were sold at very low interest rates.Because it's BlackRock,everybody believes there's going to be liquidity.
It's just beginning to be a major problem.The SEC sees danger because these companies that really should have had to pay higher interest rates borrowed a great deal of money,and I'd like to know how they're going to pay that back,or even how they're going to restructure the finances,Mr.Icahn explained.