Hedge fund EJF Capital told clients it was suspending redemptions from one of its funds for the foreseeable future because it didn’t want to be a forced seller in what it called “dysfunctional” credit markets.

The $7bn EJF, founded by Emanuel “Manny” Friedman, told clients in a letter Friday it was preventing investors from withdrawing their money from its Debt Opportunities Fund. That fund managed $2.5bn at the end of February. While the fund received redemption requests totaling only 6% of its assets under management for March 31, the letter said, it wanted to “protect all of the Fund’s investors by not selling assets into a nonfunctioning market”.