When I first heard the Federal Reserve wanted to encourage the SEC to mandate "exit fees" for investors in bond mutual and closed-end funds, I couldn't believe my ears.
The Fed is apparently concerned about a "run " on bond funds when investors clamor for the exits as soon as the Fed increases interest rates, and that a market "shock" might ensue. Yes, the Fed is concerned a market "bubble" has been created in high yield "junk" and corporate bond funds. Strangely enough, they themselves created it.
