What Is the UBS Yield Enhancement Strategy (YES)?
Video Summary: Sam Edwards Explains What is the UBS Yield Enhancement Strategy: UBS YES investors have suffered serious investment losses of 20% or more. For these high-net-worth investors, we are talking six-, seven-, even eight-figure losses.
Sam Edwards here to talk to you about the UBS yield enhancement strategy. Most commonly referred to as YES. The UBS YES Program was marketed to high net worth and investors as a way to provide an incremental yield on an existing portfolio. The idea was that UBS would use an investor's existing portfolio stocks and bonds is collateral to write hedged options contracts often refer to as iron condor options.
UBS repeatedly represented that while options may be risky, the YES program was implemented in a way that the downside risk of the options contracts would be significantly mitigated. In reality, UBS uses discretion to implement the YES iron condor strategy in a manner that provided very little protection to YES investors. Our significant research and analysis into this program has demonstrated the UBS YES was in many ways a leveraged bet on the stock market, yet UBS certainly did not market that way. And did not disclose that to investors. As a result of this leverage bet when the stock market dropped in December of 2018 and then again in February/ March of 2020, massive losses were incurred.
In fact, in December 2018 alone, UBS YES invests just lost almost 700 million dollars. We are currently and have worked with a number of UBS YES investors to help them recover their losses. In fact, in the last few months we have taken two UBS YES cases to our arbitration before FINRA; and in both of those cases, we won for the investor. UBS argued that the investors were too sophisticated or the investors were too wealthy to justify any kind of an award damages, but we were able to prove UBS wrong.
If you invested in UBS YES Program and lost money, I would encourage you to reach out to our firm and discuss your options as now is the time to take action. Don't wait and possibly miss out on the opportunity to recover losses that never should have happened.