Structured Products Structured Finance
Fort Lauderdale Structured Finance Attorney
At the law firm of Sonn | Erez, our Florida structured products lawyers represent clients in all types of complex securities fraud matters. It is the responsibility of brokers and advisors to fully disclose all risks associated with an investment. We dedicate our entire practice to helping clients who have lost money due to the wrongful or negligent conduct of brokers and brokerage firms to get their money back.
Our attorneys have represented clients who have lost money in a variety of structured product cases, including principal-protected notes and reverse convertible notes.
Principal Protected Notes
Principal protected notes can be linked to an index, a stock, a fund, a commodity or any combination of these. The idea of a principal protected note is that, if the underlying investment does well, you get back your principal plus any increase in value during the term. If the value goes down, you are guaranteed to get your principal back. These are sold as safe investments with no risk for loss because the principal is guaranteed, typically by a bank.
Many of the cases we are handling right now involve claims against firms that sold Lehman Brothers principal-protected notes. In that case, Lehman guaranteed the notes themselves. When they went bankrupt, there was no money to back up the notes. Brokers and firms that sold these notes failed to inform investors about Lehman's financial situation when the notes were sold. We seek to hold negligent brokers and investment firms accountable for your losses.
Reverse Convertible Notes
A reverse convertible note is a type of structured product typically linked to a particular stock, though it can be linked to an index or basket of stocks. At the maturity of a reverse convertible note, the investor will either receive the full principal investment or a predetermined number of shares of the underlying company.
Reverse convertible notes that are tied to low quality stocks can lose value over the life of the note. This can result in the investor taking a substantial loss. Our attorneys have handled a wide variety of these cases, including representing clients who lost money on notes tied to Lehman Brothers stock, IndyMac stock and others.
Structured finance refers to a specific type of investment that centers on collateralized debt obligations (CDO) and collateralized loan obligations (CLO), such as mortgages and auto loans. These are sometimes referred to as asset-backed securities. Through a process called securitization, pools of assets are created, which become the financial securities that are sold to investors.
One notable aspect of structured finance that many investors don't understand is tranching. This is a process that makes it possible to create a class of securities that has a higher rating than the average of the underlying collateral. Some investors may buy the security based on information about the rated class without understanding the full extent of the risk involved.
Call for a Free Consultation
Contact our office today to discuss your structured products or finance case. You can reach us by phone at 1-866-FRAUD-11 or via e-mail. We take every case on a contingency basis, which means we don't collect a fee unless we make a financial recovery for you.*
Under Florida Bar rules, we are not able to discuss our past results on this website. If you would like to learn more about our previous cases, please contact us for additional information.
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*Client will be responsible for costs and expenses.