high yield bonds

Following GWG Holdings’ Chapter 11 Bankruptcy, SSEK Law Firm Steps Up Investigation of Brokerage Firms That Sold L Bonds

Published on: April 25, 2022 | by Shepherd Smith Edwards & Kantas, LLP

High-Yield GWG L Bonds May Now Be Worth 20 to 30 Cents on The Dollar

Our high-yield bond lawyers investigate brokerage firms that sold GWG L Bonds to their customers. On April 20, 2022, GWG Holdings, Inc., the issuer of these junk bonds, announced that it had filed for Chapter 11 bankruptcy protection.

The news comes in the wake of a slew of troubles involving the Texas-based alternative firm. GWG Holdings owes investors $13.6M in principal payments plus interest and is way behind in submitting yearly regulatory filings. It also has been under investigation by the US Securities and Exchange Commission (SEC) since 2020.

SSEK Law Firm is Investigating Poor Performing High-Yield Bond Funds for Investors

Published on: April 20, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Brokers May Have Downplayed The Risks of Junk High-Yield Bond Funds

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is offering free initial case consultations to investors of the following high-yield bond funds, also known as junk bond funds.

High-yield bond funds tend to have lower-quality bonds. Their portfolios usually include high-income debt securities in which at least 65% of bond assets are unrated or rated poorly at the BB level or lower. While junk-bond funds offer higher yields than other portfolios, they are also more vulnerable to the economy, credit risks, and other adverse events.

RBC Capital Markets to Pay $1M Over Unsuitable High-Yield Bond Concentration in Customer Accounts

Published on: December 27, 2021 | by Shepherd Smith Edwards & Kantas, LLP

RBC Capital Markets Settlement With FINRA Includes a Fine and Restitution

RBC Capital Markets has reached an agreement with FINRA in which the broker-dealer will pay $1M to resolve allegations of overconcentration in customers’ accounts involving high-yield bonds. Without denying or admitting to the self-regulatory organization’s (SRO’s) findings, RBC consented to a censure, a $550K fine, and more than $456K in restitution.

According to FINRA, the brokerage firm did not identify over 100 client accounts with conservative profiles that should have been reviewed for a possible unsuitable concentration of high-yield bonds.

What Are The Risks of High-Yield “Junk” Bonds?

Published on: August 31, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Denver Investors May Be Facing Losses from High Yield Bonds

As the number of COVID-19 cases continues to increase in parts of the US, high-yield junk bonds have been underperforming.

Not only that, but according to The Wall Street Journal, in early July the growing concern that there may be a bigger wave of pandemic cases coming caused junk bond yields to reach their highest levels in weeks as the high-risk debt “underperformed” in certain credit markets.