This research post begins with two simple premises in mind:  (1) Sometimes financial advisors charge their customers excessive commissions or advisory fees; (2) When this does occur, the customer—who likely has reposed great trust in his or her financial advisor—has no idea that excessive commissions or fees were charged.  After all, it stands to reason […]

By Montgomery G. Griffin  In a recent edition, the Wall Street Journal reported the UBS Yield Enhancement Strategy to be, “A complex investment strategy pitched as low-risk by stockbrokers at UBS Group AG” that has “triggered a backlash from clients of its securities unit.”  The WSJ also informed, “In just one month late last year […]

It is a disturbing and unfortunate fact that senior citizens are among the most targeted groups for financial abuse.  Indeed, it is estimated that seniors in the United States lose as much as $36.5 billion to financial exploitation annually, with many believing that such estimates are dramatically understated due to the fact that they rely […]

It has been widely reported (including by the Wall Street Journal) that some investors around the United States—including some seeking low-risk, steady yields—incurred losses in the UBS Yield Enhancement Strategy program.  The program involved, among other things, the use of options transactions, which included added costs due to options bid-ask spreads and fee-based advisory fees. […]

We have written elsewhere about how high-yield investments reliably yield high risks.  This prior post addressed the risks inherent in junk (or high-yield) bonds.  Two more specific examples of this proposition can be found with Real Estate Investment Trusts (“REITs”) (including Mortgage REITs, or “mREITs”) and Master Limited Partnerships (“MLPs”).  REITs and MLPs are often […]

Elderly investors seeking income and relative stability of their principal are often encouraged by their broker or financial advisor to buy bonds (or bond funds).  Often, high-yield bonds, and their high risks, are not suitable investments for elderly and retired investors due to the higher probability (vis-à-vis high quality, investment grade bonds) that a loss […]

As recently as March 5, 2019, Kiplinger published an article focused on the risks of “high-yield” or “junk” bonds.  Its headline did not mince words: “Junk Bond Funds Don’t Belong in Long-Term Portfolios . . . Safety-Minded Investors Can’t Overlook the Risk that Comes Along with Them.” Before reading further, it is critical to understand […]

Disputes between aggrieved investors and their former brokerage firms are heard and decided in a highly specialized forum (FINRA arbitration) and they typically involve highly specialized issues (suitability, churning, calculating market-adjusted damages, complex securities, etc.).  To optimize your chance of achieving a substantial recovery, the lawyer you choose should similarly be highly specialized in the […]