Monday, September 14, 2009

Former NBA Forward Horace Grant Wins Arbitration Case vs. Mutual Fund

Add former Chicago Bulls, Orlando Magic and Lakers forward Horace Grant to the list of investors who got burned by exposure to collateralized debt obligations tied to residential mortgages. Fortunately for Grant, he won an arbitration case against case against a mutual fund he claimed misrepresented the risk levels of the bond funds it sold him. Morgan Keegan & Co. of Memphis, TN, has been ordered to pay Grant $1.46 million for losses incurred via his position in funds heavily invested in the aforementioned collateralized debt obligations.