Posts belonging to Category Bonds
Posted by Page PerryonDecember 14, 2011
MF Global’s exposure to European sovereign debt was not done through straightforward purchases of bonds. Instead, CEO Jon Corzine used a transaction known as repurchase-to-maturity (RTM). The RTMs allowed MF Global to, in essence, buy the bonds on margin, yet classify the purchase as a sale, with the bond and the repurchase liability removed from […]
Categories: Bonds, Economy, Investigations, Regulatory Developments
Posted by Page PerryonDecember 6, 2011
The U.K. Financial Services Authority fined HSBC Holdings PLC £10.5 million (its largest fine ever) for selling unsuitable products to elderly customers. HSBC was further ordered to pay another £29.3 million to compensate customers, who were advised to buy bonds whose maturity dates were longer than the customers’ life expectancies. (“HSBC Fined for Selling Unsuitable […]
Categories: Bonds, Brokerage Firms, Common Securities Broker Abuses, Elder Abuses, Fairness/Just & Equitable Conduct, HSBC, Investigations, Investment Advisers, Investment Malpractice, Investor Alerts, Misrepresentation/Omission, Regulatory Developments, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Unsuitable Recommendations
Posted by Page PerryonNovember 21, 2011
Fitch Ratings issued a report on November 16 on the U.S. banking sector saying that “the risks of a negative shock are rising” if the effects of European debt crisis keep spreading. (“Fitch’s Warning Spooks Investors, ” Wall Street Journal).
Categories: Bank of America, Bonds, Brokerage Firms, Credit Default Swaps, Economy, Goldman Sachs, Investigations, Investment Advisers, Investor Alerts, J. P. Morgan Chase, Market Developments, Morgan Stanley, RBC Dain Raucher, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools, Stocks
Posted by Page PerryonNovember 14, 2011
When world markets move significantly in apparent response to major macroeconomic news, even supposedly “uncorrelated assets” move in unison with them, according to Jason Zweig’s Wall Street Journal article, “Caging Raging Contagion.” Such a significant move occurred last week when the Italian government and bonds collapsed over its fiscal problems, and everything else fell, too.
Categories: Alternative Funds, Alternative Investments, Asset Backed Securities, Bonds, Brokerage Firms, CDOs, Closed End Funds, Common Securities Broker Abuses, Derivatives, Exchange-Traded Funds (ETFs), Hedge Funds, High Yield (Junk) Bonds, Investigations, Investment Advisers, Investor Alerts, Mortgage Backed Securities, Mortgage Securities & Collateralized Debt Obligation Problems, Mutual Funds, Nontraded REITs, Preferred Stocks, Private Investments/Reg D, REITs, Reverse Convertibles, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools, Stocks, Structured Notes
Posted by Page PerryonNovember 10, 2011
“[I]nvestors face a perfect storm ? risky assets priced to achieve dismal long-term returns (except in comparison to equally dismal alternatives), coupled with the risk of an oncoming recession,” according to John Hussman (“John Hussman: Nearly every asset class set for ‘miserably low’ returns,” InvestmentNews).
Categories: Alternative Investments, Bonds, Brokerage Firms, Investment Advisers, Investor Alerts, Money Market Funds, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools, Stocks
Posted by Page PerryonOctober 27, 2011
A study by the Charles Schwab Corporation indicates that retail investors want more information about the bonds they invest in, specifically, the base price of bonds and the amount of the markup by brokers. Andrew Osterland’s recent InvestmentNews article entitled “Bond buyers in the dark about broker markups ? and not happy about it” discusses […]
Categories: Bonds, Brokerage Firms, Charles Schwab, Common Securities Broker Abuses, Investigations, Investment Advisers, Investor Alerts, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools
Posted by Page PerryonOctober 5, 2011
Brokers often pitch alternative investments when the stock market is declining and returns on traditionally safe investments are too low. A few alternative investments may have some merit. Many more are flawed, bad and ugly in that they provide investors little more than uncompensated high risk. Then there are those that cross the line into […]
Categories: A General Overview, Alternative Investments, Bonds, Brokerage Firms, Common Securities Broker Abuses, Fairness/Just & Equitable Conduct, Investigations, Investment Advisers, Investment Malpractice, Investor Alerts, Life Policies/Viatical Settlements, Misrepresentation/Omission, Peer to Peer Loans, Ponzi Schemes, Private Investments/Reg D, Promissory Notes, Regulatory Developments, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools
Posted by Page PerryonOctober 5, 2011
The recent sell-off in the high yield bond market could mean an increase in bankruptcy filings as shaky companies that depend on that market find it is closed to them, according to Oleg Melentyev, head of high yield strategy at Bank of America. Despite the extremely low yields on traditionally safe investments such as certificates […]
Categories: Alternative Investments, Bonds, Brokerage Firms, Common Securities Broker Abuses, Elder Abuses, High Yield (Junk) Bonds, Investigations, Investment Advisers, Investment Malpractice, Investor Alerts, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools, Unsuitable Recommendations
Posted by Page PerryonSeptember 22, 2011
Bond investors have significant risks lurking in their portfolios according to many experts. U.S. Treasury securities are priced for recession and very expensive. Yields are at historic lows. Inflation is highly probable before this decade is out, according to experts. Even a modest rise in interest rates would kill long and intermediate term U.S. Treasury […]
Categories: Bonds, Brokerage Firms, Investigations, Investment Advisers, Investor Alerts, Market Developments, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools
Posted by Page PerryonAugust 8, 2011
Just as a low tide near the seashore can reveal shipwrecks, a falling stock market often reveals misconduct by investment advisers. This is particularly true with respect to an investment adviser’s duty to recommend only investments to a customer that are suitable in light of the customer’s investment objectives, status in life and risk tolerance. […]
Categories: A General Overview, Asset Backed Securities, Bonds, Brokerage Firms, Common Securities Broker Abuses, Derivatives, Early Retirement Scams, Elder Abuses, Exchange-Traded Funds (ETFs), Investment Advisers, Investment Malpractice, Investor Alerts, Investor Rights, Mortgage Backed Securities, Municipal Bonds, Mutual Funds, Nontraded REITs, Private Investments/Reg D, Reverse Convertibles, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Structured Notes, Unsuitable Recommendations, Variable Annuities and Equity-Indexed Annuities
