RobertB
November 9th, 2007, 07:22 PM
Bond fund investors nervous about debt
By TIM PARADIS, AP Business Writer Wed Nov 7, 7:04 AM ET
NEW YORK - Mutual fund investors who looked to counter their stock holdings with a conservative footing in bonds might understandably feel betrayed by recent headlines warning of cracks in the credit markets and threats to the values of some bonds.
But before hastily selling bond funds over fears that ruptures in subprime mortgages will prove ruinous to their holdings, investors should first examine what they own and consider whether their investments are showing signs of distress.
Subprime debt is tied to borrowers with poor credit many of whom took on home loans when the housing market was stronger and are now having trouble paying their mortgages.
http://news.yahoo.com/s/ap/20071107/ap_on_bi_co_ne/of_mutual_interest;_ylt=AnN05xfT5MzECFJ_ROYC_OmyBh IF
By TIM PARADIS, AP Business Writer Wed Nov 7, 7:04 AM ET
NEW YORK - Mutual fund investors who looked to counter their stock holdings with a conservative footing in bonds might understandably feel betrayed by recent headlines warning of cracks in the credit markets and threats to the values of some bonds.
But before hastily selling bond funds over fears that ruptures in subprime mortgages will prove ruinous to their holdings, investors should first examine what they own and consider whether their investments are showing signs of distress.
Subprime debt is tied to borrowers with poor credit many of whom took on home loans when the housing market was stronger and are now having trouble paying their mortgages.
http://news.yahoo.com/s/ap/20071107/ap_on_bi_co_ne/of_mutual_interest;_ylt=AnN05xfT5MzECFJ_ROYC_OmyBh IF