{"id":1392,"date":"2014-02-05T13:10:16","date_gmt":"2014-02-05T13:10:16","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2014\/02\/claims_mount_ubs_loss_larger_t"},"modified":"2022-09-19T10:12:56","modified_gmt":"2022-09-19T15:12:56","slug":"claims-mount-ubs-loss-larger-t","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/claims-mount-ubs-loss-larger-t\/","title":{"rendered":"Claims Mount: UBS Loss Larger Than Reported in Puerto Rico"},"content":{"rendered":"

\t\t\t\tThe losses that investors in Puerto Rico bonds and UBS Puerto Rico bond funds have suffered continue to mount, and the downgrade to high risk, or “junk bond” status is only going to make things worse. In 2013 alone, investors in Puerto Rican bonds saw losses of over 20%<\/a>. However, those losses do not include the leverage that many investors were ultimately exposed to. Many investors were sold proprietary investments funds created by UBS. Those funds borrowed additional funds to be able to purchase even larger amounts of Puerto Rican bonds. This strategy increases the potential gains an investor can make, but also increases the potential losses. Investors in funds that were 50% leveraged, which many UBS funds were, saw losses closer to 40%. <\/p>\n

This permitted these UBS funds to see losses of over $1.6 billion<\/a>. Moreover, these losses do not take into account the losses of investors who were convinced to buy Puerto Rico bonds outside of these funds, or investors who lost additional money through extra leverage sold by their brokers.<\/p>\n

Many investors were convinced to borrow more money<\/a>, either through a margin account, a bank loan, or through a second mortgage, to make even larger investments, exponentially increasing their risk. These layers of borrowed money made it possible for some investors to see their entire accounts get wiped out. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The losses that investors in Puerto Rico bonds and UBS Puerto Rico bond funds have suffered continue to mount, and the downgrade to high risk, or “junk bond” status is only going to make things worse. In 2013 alone, investors in Puerto Rican bonds saw losses of over 20%. However, those losses do not include […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3883],"tags":[],"class_list":["post-1392","post","type-post","status-publish","format-standard","hentry","category-standard-and-poors"],"yoast_head":"\nClaims Mount: UBS Loss Larger Than Reported in Puerto Rico — Investor Lawyers Blog — February 5, 2014<\/title>\n<meta name=\"description\" content=\"The losses that investors in Puerto Rico bonds and UBS Puerto Rico bond funds have suffered continue to mount, and the downgrade to high risk, or "junk — February 5, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/claims-mount-ubs-loss-larger-t\/\" \/>\n<meta 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