GAM Shares Plunge After Asset Manager Freezes Fund

GAM Shares Plunge After Asset Manager Freezes Fund

Assessment

Interactive Video

Business

University

Hard

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The transcript discusses a financial firm's decision to freeze $6.3 billion in bond funds following the suspension of a star manager. This move raises concerns about liquidity in bond market funds, which can cause investor panic, especially when they cannot access their money. The firm aims to avoid a fire sale to protect other investors, but this decision may not sit well with all. The transcript also speculates on the firm's future, given its stock decline and potential interest from other market players.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What concerns might arise from the freezing of bond market funds?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

How does the suspension of a star manager impact investor confidence?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the potential risks of not being able to withdraw funds from a bond market?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

In what ways might a firm's poor record keeping affect its investors?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

What implications does a 45% drop in stock value have for a firm in the bond market?

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