I like Jeff Snider’s podcasts and in this one he spends the first half talking about Canadian real estate investment funds that are starting to restrict payouts. Given that Canadian real estate values are crashing, if they don’t halt outflows the funds could quickly become insolvent. The Bloomberg article he quotes is behind a paywall, but he conveniently scrolls through it so you can read the whole thing.
“Stung by a deep downturn in the country’s housing market, many of the funds have restricted cash distributions, client withdrawals, or both in a process the industry calls gating. Often the companies don’t say when access will resume, and about 30 billion Canadian, about 21.7 billion US equivalent. Almost 40% of the 80 billion Canadian invested in such funds is now locked up.”