PARIS (AP) -- BNP Paribas SA, France's largest bank by market value, announced Thursday that one of its units was suspending three of its asset-backed securities funds, saying it could not value them accurately because of problems in the U.S. subprime mortgage market.
The announcement by BNP Paribas Investment Partners sent further shock waves through an already sensitive money market.
The bank said it was suspending three funds worth a total of euro2 billion ($2.75 billion): Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia. All funds combined at BNP Paribas Investment Partners are worth more than euro350 billion ($482.79 billion).
"The complete evaporation of liquidity in certain market segments of the U.S. securitization market has made it impossible to value certain assets fairly regardless of their quality or credit rating," BNP Paribas said in a statement.
Translation: when you've got something that no one will buy, it's pretty hard to say what it's worth.