BNP Paribas will this week re-open the investment funds it suspended earlier this month.
Withdrawals from the three funds were suspended in the wake of the crisis in the US subprime mortgage market. However, according to a report from the Wall Street Journal, the bank is set to commence operations again this week.
BNP Paribas cited the difficulty in valuing the funds following an exodus from investors as the principal reason behind the decision to call a halt of withdrawals last month.
“The complete evaporation of liquidity in certain market segments of the U.S. securitisation market has made it impossible to value certain assets fairly regardless of their quality or credit rating,” says a statement from the bank.