Attention Credit Suisse Contingent Coupon Autocallable Yield Notes Investors. Our Seasoned Structured Product Loss Lawyers Can Help You Assess If Our Broker-Dealer May Owe You Damages
Structured notes are complex debt securities that should not be recommended to retail investors. Some of these alternative investments may even be too risky for many sophisticated investors. Shepherd Smith Edwards and Kantas (investorlawyers.com) is investigating claims of losses involving Credit Suisse Contingent Coupon Autocallable Yield Notes linked to companies, including Uber Technologies Inc., Lucid Group, and others.
Issued in $1000 minimum denominations, Credit Suisse Contingent Coupon Lucid and Uber Autocallable Yield Notes are complex debt instruments. They are automatically callable if the underlying performance of their equities satisfies certain thresholds.
However, they provide no guarantee of principal, and investors could lose part of or their entire investment should there be a Knock-in event. Any repayment is contingent upon the issuer’s creditworthiness because these are Credit Suisse senior unsecured obligations. Now, we are hearing that investors who were promised high yields may have sustained serious structured note losses instead.
Why Are Autocallable Structured Products So Risky?
This type of complex investment usually combines a bond and a derivative component. Performance is linked to an underlying asset or index. Autocallable yield notes are meant for short-term investing. This market-linked investment comes with a coupon that only becomes available if the note matures prior to the maturity date, at which point substantial returns may be possible.
However, these are also very speculative and can expose investors to serious losses, including that of their principal, if all does not go well, such as when extreme volatility affects the underlying index.
Autocallable notes should only be recommended to sophisticated investors who can understand and weather these serious risks that may arise. Structured products in general are illiquid and non-transparent. Autocallable notes typically do not provide principal protection.
If the security drops below a certain level, this kind of investment may lose all of its value, and income payments may stop altogether. Meanwhile, brokers earn high commissions from selling these high-risk equity-linked derivatives to customers.
How Can Our Trusted Structured Product Loss Lawyers Help?
You may be the victim of an unsuitable investment recommendation, overconcentration, or a misrepresentation of the risks involving your Credit Suisse Contingent Coupon Uber or Lucid notes. If that is the case, as an investor, you could have grounds for suing your financial advisor for damages.
Structured note claims are complex cases and you want to hire a seasoned securities law firm that understands these investments and how to maximize your chances for a full financial recovery. This is not the kind of claim you want to pursue on your own.
Shepherd Smith Edwards and Kantas Structured Product Loss Lawyers represent structured note investors. We have the experience, skills, and resources necessary to pursue this kind of case, whether in arbitration, mediation, negotiations, or litigation.
Too often, we have spoken with retail investors and sophisticated investors who were blindsided by losses they didn’t even realize were possible because their broker-dealer neglected to make sure an investment was appropriate for them and/or that they understood the risks.
Do You Have Grounds For a Credit Suisse Contingent Coupon Autocallable Yield Notes Lawsuit?
Credit Suisse was the issuer of its Contingent Coupon Yield Notes. However, other broker also sold this structured product to their customers. Call (800) 259-9010 or fill out this contact form to schedule your free initial case consultation.