REGIONS MORGAN KEEGAN MUTUAL FUNDS RECOGNIZED AS RISKY AND LIKELY TO BE HIT HARD BY SUBPRIME LOAN LOSSES
On March 14, 2007, the New York Times reported that mutual funds holding investments backed by subprime loans, including mortgage backed securities, would “probably be hurt by the turmoil that is tearing through the residential mortgage market.”
Regions Morgan Keegan mutual funds were recognized as being at risk for having a substantial portion of its assets invested in “unrated mortgage-backed securities” or investments that were “below investment grade.” The Regions Morgan Keegan mutual funds were distinguished from other funds that only purchased investments backed by subprime loans when the investments were rated highly by credit rating agencies like Moody’s Investors Service, Standard & Poor’s and Fitch.
Investments in junk bonds are likely to suffer in the event of adverse market conditions and should not be sold to conservative investors.
Read the New York Times story:
http://www.nytimes.com/2007/03/14/business/14debt.html?_r=1&pagewanted=all&oref=slogin
