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The measure, the first of its kind in the world, is part of a sweeping set of new tobacco regulations coming into effect on Tuesday that will see tight controls phased in over the next two years

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Despite significant progress in reducing tobacco use, the emergence of e-cigarettes and other new tobacco and nicotine products present a grave threat to youth and to tobacco control

Retail holders, though, of high-yield funds, or even standalone tobacco bonds, could decide to sell amid fears of additional defaults and/or extension risk, so "this presents a potential, albeit moderate, liquidity risk to the tobacco sector, or high yield overall," the report said