Credit Market Fall-Out #17 – Problems with US Mortgages Continues in Europe

The article in the WSJ discusses the problems associated with holding US mortgage securities in German and French mutual funds. Also included is a discussion of how US mutual funds versus some European mutual funds have handled US mortgage securities.

Troubles in the U.S. mortgage market have forced bailouts of a European mutual fund and a German bank -- signaling the risk of the mortgage situation to lenders and insurers, not just fund investors.