Hundreds of Broker-Dealers May Have Sold Up to $2B of High-Yield Junk Bonds
InvestmentNews reports that according to an industry insider, GWG Holdings may have issued up to $2B of high-yield junk bonds in recent years. While Emerson Equity is the managing broker-dealer for the GWG Issuer, there may have been hundreds of other broker-dealers that also sold L-Bonds to investors.
In a January 15, 2022 filing with the US Securities and Exchange Commission (SEC), GWG disclosed that it hasn’t been able to issue $13.6M in principal payments and interest that it owes to L Bond investors. The Dallas-based alternative asset manager has a 30-day grace period to complete the payments or risk default.