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French bank BNP funds start trading slightly lower after suspension

French bank BNP funds start trading slightly lower after suspension

French bank BNP Paribas said Wednesday that some of the funds frozen because of the U.S. subprime market crisis reopened, and saw a "very limited fall" in their net asset value.
Two of the three funds frozen Aug. 7 resumed trading on Wednesday, the bank said in a statement.
BNP Paribas ABS Euribor, with euro795 million (US$1.08 billion) of assets, fell 0.97 percent, while the BNP Paribas ABS Eonia fund, with euro72 million (US$98.1 million) of assets, dropped 1.78 percent.
The assets held by the funds are rated AAA or AA and "haven't suffered a payment default or downgrading of their credit rating," BNP Paribas said. The funds will "function normally from now on."
A third fund, Parvest Dynamic ABS, will be unfrozen on Thursday, BNP said.
The announcement earlier this month that the funds would be frozen sent shock waves through spooked financial markets at home and abroad. Banks became more stringent about lending as liquidity linked to risky U.S. mortgages dried up, prompting massive intervention by central banks.
French Prime Minister Francois Fillon is meeting with French banking leaders on Thursday to discuss the crisis.
Funds in other countries have closed down and some lenders have suffered, but after intense central bank intervention in Europe, Asia and the U.S., stock prices have recovered somewhat.


Updated : 2021-03-02 16:38 GMT+08:00