The TCW Total Return Fund's portfolio allocates 16% of its assets to triple-A-rated mortgage pass-through securities, which are bonds backed by pools of mortgages, and 75% to triple-A-rated collateralized mortgage obligations, which are more complex mortgage-backed securities....
Anderson, who co-manages the BlackRock Bond Investors Fund(MDHQX), plants the blame for the subprime mortgage mess firmly at the feet of the bond rating agencies, saying, "they are a huge concern.....these ratings are artificial because they have been relying on recent historical prices in a rising market," the fund manager said.
Robert Rodriquez, chief executive officer of First Pacific Advisors, was even more blunt. "We haven't seen much of a problem in the subprime area [but only] because the pricing is a fraud...."
http://www.thestreet.com/_yahoo/funds/mutualfundmonday/10365816.html
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