Credit Suisse will shut down its Credit Suisse Target Return bond fund following bad bets related to the subprime mortgage market. The fund has fallen 14.45% over the past two years as one of its largest holdings, Kensington Mortgages, has fallen more than 50% in the same period, reports reports FundStrategy.co.uk. “We had the view that yield curves would steepen and we thought this fund would benefit, but it didn't," said Toby Ricketts, an investment director at Margetts and an investor in the fund. “They said that the poor performance was due to exposure to mortgage-backed securities.”
May 28, 2008