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'Stale price' charges loom as SEC probes junk bond funds

Next leg of SEC purge of the fund management industry to focus on high yield sector

The Securities and Exchange Commission (SEC) is close to unveiling charges against an investment firm for using out of date bond prices to make unlawful trading profits - as the latest leg of its fund management probe kicks in.

The SEC is targeting high yield bond funds and their use of "stale prices" in the next stage of its investigation into the fund management industry, and could file charges against an investment firm within days, sources inside the SEC said.

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