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Are you invested in Morgan Keegan Bond Funds? If so, you may have
grounds for a lawsuit against your brokerage house. The performance of
these funds have proven disastrous. Over the past five months in
particular, the Morgan Keegan Funds have plunged to new depths. Since
the beginning of 2007, many of the Morgan Keegan Bond Funds have losses
of more than 50%. It will only get worse.
Here are the Morgan Keegan Bond Funds that suffered the greatest losses:
Regions Morgan Keegan Select High Income-A;
Regions Morgan Keegan Select High Income-C;
Regions Morgan Keegan Select High Income-I;
RMK High Income Fund; RMK Strategic Income Fund;
Regions Morgan Keegan Select Intermediate Bond Fund-A;
Regions Morgan Keegan Select Intermediate Bond Fund-C;
Regions Morgan Keegan Select Intermediate Bond Fund-I
Why did these funds perform so abysmally? Answer: Overconcentration.
They were overconcentrated in mortgage-backed securities and
collateralized debt obligation, which made up over 50% of each funds
portfolio. CDO is short for "collaterialized debt obligation." In
simplistic terms, CDOs are bonds underpinned by large pools of debt.
Similarly, mortgage-backed securities (MBS) are debt obligations secured
by pools of mortgages. These investments pay interest like ordinary
bonds. However, unlike ordinary bonds, mortgage backed securities also
repay the principal a little bit at a time as the underlying mortgage is
paid off. The risk is the mortgage will never get paid off.
Contact us now to discuss your personal situation.
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