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Strategies & Market Trends : Anthony@Pacific & TRUTHSEEKER Expose Crims & Scammers!!!
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From: ravenseye9/10/2007 2:58:14 PM
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Bond Fund Investors May Be in for Shock
By ALAN ZIBEL – 22 hours ago

WASHINGTON (AP) — Could the housing market's woes spread to bonds held in mutual funds by millions of ordinary investors?

Some experts — and hedge fund investors who have made big bets that the mortgage crisis will worsen — are saying that's exactly what will happen. Some bond funds that invest in riskier short-term debt already have been whacked by soaring default rates on bonds backed by subprime loans made to borrowers with weak credit....
ap.google.com
...Fidelity Advisor Ultra Short Bond A and Fidelity Ultrashort Bond, managed by Fidelity Investments, are both down nearly 5 percent for the year, a sharp drop for a fixed-income fund.

The declines were caused by several factors, including "the fund's holdings in subprime mortgage securities, which have primarily been in the highest-rated AAA and AA (segments of debt)" and exposure to deteriorating conditions in the bond market generally, Sophie Launay, spokeswoman for Boston-based Fidelity, said in an e-mail.

State Street Corp.'s Advisors' SSgA Yield Plus has lost 9.5 percent of its value so far this year. State Street declined to comment Friday. The company also declined to deny or confirm a report in the Boston Globe last month, which quoted a letter to State Street clients alerting them to a 42 percent decline this year in the State Street Limited Duration Bond Fund for institutional investors...
..."There may be more for bond-fund investors to worry about,"
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