Investors are losing tens and even hundreds of thousands of dollars due to risky investment funds that were not disclosed as being risky. Jeffrey A. Feldman, an experienced securities law attorney based in San Francisco, has been helping investors recover losses since 1991. He understands the complexity and dangers of many of the bad investment products currently in the news. His law firm is currently investigating these cases to determine what losses may be recovered on behalf of investors.
Subprime Mortgages — Asset Backed Securities
When Wall Street began looking for more mortgages to pool, and to sell to investors, lenders began issuing sub prime mortgages to less-than-appealing debtors. These risky mortgages or portions of these mortgages were then repackaged and pooled into securities sold to investors. When interest rates rose, or the mortgages “adjusted”, homeowners defaulted, and foreclosures rose. Suddenly, the subprime mortgage crisis began as many of these investments became worthless. Investors holding collateralized debt obligations (CDOs), collateralized mortgage obligations (CMOs), mortgage backed securities (MBSs), and other asset-backed securities are now suffering significant losses due to the sub prime mortgage crisis.
Morgan Keegan Investment Funds
Morgan Keegan Bond Mutual Funds are investment products that were sold as a relatively conservative mutual fund. However, many of the risks were not fully disclosed. Morgan Keegan Bond Mutual Funds invested more than half of its fund in high-risk subprime asset backed securities in effort to obtain high yields. With the subprime mortgage crisis in 2007, investors holding Morgan Keegan investment products suffered losses of more than 60 percent. These losses could have been avoidable had the risks been fully disclosed. Additionally, had the fund diversified funds appropriately, investors would not have suffered such significant losses.
Schwab YieldPlus Funds
Schwab YieldPlus Funds is an investment product that invested heavily in subprime loans and other asset-backed securities. The losses suffered in the Schwab YieldPlus Fund are a clear example of a fund misrepresenting the safety of the fund. Many people have lost over 30 percent of their principle investment in the Schwab YieldPlus Fund when they thought such losses would not be possible.
Lehman Brothers Principle Protected Notes
Lehman Brothers principle protected notes are a form of structured product that was issued to investors looking for high yields with protection for the principle investment if the market falls. While these principle protected notes issued by Lehman Brothers were sold as safe bonds which were supposed to be tied to securities, what the investors were actually buying was the unsecured debt of Lehman Brothers. Investors were literally paying the operating expenses of Lehman Brothers. Now, in light of the Lehman Brothers bankruptcy, investors are losing hundreds of millions of dollars.
Contact Lawyer Jeffrey A. Feldman Today
Contact us for more information about investment products in the news or to discuss your particular situation.