Get set . . .  Go ask your fund managers how they’re marking their books, says BI

On your marks . . . 

Here’s a nice catch from Eric Balchunas and Athanasios Psarofagis at Bloomberg Intelligence last week: the Catalyst Interest Rate Opportunity Fund is about to shut down, after losing nearly 30 per cent of its net asset value in just one month.
The strategists argue that the Catalyst Fund could be a “canary in the coal mine” for bond funds:

We believe bond mutual funds may present the greatest systemic risk in the market: They may be in worse shape than they appear due to inflated net asset values that aren’t truly reflecting the depth of the downturn in bonds.

Spicy!
This story originally appeared on: Financial Times - Author:Alexandra Scaggs