The just-released annual report of the Regions Morgan Keegan Select High Income Fund and the Regions Morgan Keegan Select Intermediate Bond Fund indicate that funds with subprime mortgage-backed securities and other structured products have turned overwhelmingly to fair value to price their holdings, The Wall Street Journal reports.

The first fund used fair value for 60% of its holdings, and the second, 50%. In so doing, the funds assessed the types of securities, the cost at the date of purchase and changes in interest rates since then, as well as collateral quality.

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