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I own mutual and money market funds, so I am safe from CDO losses, right?

April 26, 2017CDO funds losses Money Market right safe

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I own mutual and money market funds, so I am safe from CDO losses, right?

1 Answer

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Wrong. CDO problems have even hit investors who thought their money was safely positioned in high quality and well diversified mutual funds. Many, it turns out, were investing in CDOs or writing credit default swaps on CDOs in order to increase investor returns. That practice has resulted in very significant losses.