Funds that have stumbled badly:
Schwab YieldPlus
lost a staggering 33.7% of its value
Fidelity Ultra-Short Bond
fell 10.5%
SSgA YieldPlus and Evergreen Ultra Short Opportunities have been liquidated, and more are expected to close.
In an effort to boost yields many of these portfolios invested in securities that were backed by subprime mortgages. And when the subprime market imploded last year, the funds began sinking into the red.
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