UK-based Millennium Global Investments started unwinding its Millennium Global Emerging Credit Fund last week, after some banks changed the terms of their credit lines, a person familiar with the situation told Financial News.

The hedge fund, with $800m (€600.3m) in assets under management, was affected by the "complete collapse of the financial markets," the person said, adding that the firm had no other option. The source said it would take some time to unwind the fund given "the current state of the market."