BOND FUND LOSSES LINKED TO MORTGAGE-BACKED SECURITIES
HAS YOUR BOND FUND RECENTLY DECLINED IN VALUE?
With the subprime mortgage crisis, many bond funds have suffered significant losses in the past year, despite being sold as low risk investments.
Investors unknowingly took on more risk as fund managers made large investments in illiquid securities linked to subprime mortgages, such as Collateralized Bond Obligations (CBOs), Collateralized Loan Obligations (CLOs), and Collateralized Mortgage Obligations (CMOs). These securities eventually became illiquid as homeowners began to default when the subprime mortgage market collapsed in 2007, leading to a record number of foreclosures.
The Regions Morgan Keegan Select Intermediate Bond fund is down 44% since the start of the year and 72% over the past year. State Street Global Advisors Yield Plus and Schwab YieldPlus have fallen 18% and 23%, respectively, since the start of the year.
If your bond fund has recently declined in value due to improper investment in mortgage-backed securities, SNSFE attorneys recommend you evaluate your legal options. You may be entitled to compensation. We would advise individual investors, especially those with large claims, to seek independent counsel before committing to a class action where the recovery may not be as great as individual actions.
Contact Jim Eccleston, head of SNSFE's securities department, for more information at JEccleston@snsfe-law.com or 312.621.4400.
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Shaheen, Novoselsky, Staat, Filipowski & Eccleston, P.C. | 20 N. Wacker Drive, Suite 2900 | Chicago, IL 60606-9719 | Tel 312.621.4400 | Fax 312.621.0268
FinancialCounsel.com, hosted by James J. Eccleston, is the companion website to this blog. It contains complimentary material of general interest to investors and financial services professionals. Investors will find material on securities arbitration to recover investment losses; industry and financial markets intelligence; and strategies for estate planning. Professionals have access to material on broker/adviser registration, regulation, compliance and disciplinary proceedings; industry and financial markets intelligence; strategies for estate planning; and broker/adviser employment litigation and injunctions, including defamation and non-competition/solicitation issues. 
James J. Eccleston heads the securities group at Shaheen, Novoselsky, Staat, Filipowski & Eccleston, P.C., a business law firm dedicated to closely-held business owners, senior executives and high net worth individuals. With three core practice groups - securities, general litigation, and corporate / transactional - and many subspecialties, SNSFE provides our clients a full spectrum of legal services, from start-up to succession planning. Visit us at snsfe-law.com or call 312.621.4400 for more information. 