Mutual funds that invest in subprime mortgages are not concerned about ongoing woes in the market, according to The Wall Street Journal.

Some mutual funds have invested in subprime market seeking higher returns, and others have snapped up collateralized debt obligations. These investments can work in surprising ways and can be hard to value. The risk is now being brought to attention from the recent surge in defaults among homeowners with high-risk mortgages.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.