Surging market volatility is making regulators increasinglyconcerned that bond funds have loaded up on hard-to-sellassets.

The U.S. Securities and Exchange Commission (SEC) has stepped upexams of money managers, while pushing mutual funds to test whetherthey could satisfy customer redemptions during periods of financialstress, said people with knowledge of the plans. Federal Reserveofficials have reached out to the biggest investment firms to quizthem on markets after price swings for stocks, currencies, andcommodities hit a 13-month high last week, said a person briefed onthe discussions.

“I certainly received a lot of calls from many regulatorsworldwide over the last few weeks asking me what's going on,”BlackRock Inc. Chief Executive Officer Laurence D. Fink said in anOct. 21 Bloomberg Television interview. The New York-based firm isthe world's biggest money manager with $4.5 trillion of assets.

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