USA crisis affects financial groups worldwide by Ana Maria Ciobanu

The largest French bank had to temporarily suspend three of its funds (Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia), fearing it would be affected by the crisis concerning the high risk mortgage credit in USA.The evanescence of any transaction on certain markets in the USA leads to an absence of the reference price and an almost total lack of liquidity for the actives appearing in the funds' portfolios, no matter the quality or the rating it has.These three funds were valued at over two billion euros on July 27 and 1.593 billion on August 7, which means a drop of 20%The bank announced the valuing of the funds will restart immediately after the markets will find the transacting volumes which can allow it to determinate the reference prices. Information about the measures which will be taken if this will not happen, would be communicated within a monthThe crisis in the United States has affected till know other financial groups too, for example Oddo(which had to freeze three funds) and AXA IM"The market will be volatile. There will be up days, there will be down days. But we will not be out of the woods with news flows. It will get worse before it gets better we're just encouraging investors to stay clear." said Graham Secker, equity strategist at Morgan Stanley.

by Ana Maria Ciobanu for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

These news are original content from young talents around the world and are selected for you by Chris Cantell.

Edited by Zuzana Tylkova