Yieldstreet Investors’ $9M Deal Over Risky Offerings OK’d
Law360 (October 29, 2024, 9:26...
30 October, 2024 No comment
UBS Group and Credit Suisse are multinational investment banks and financial services companies with offices in most major financial centers. UBS and Credit Suisse pitched the Yield Enhancement Strategy (YES) as a low-risk alternative to traditional investing. However, UBS YES investors and Credit Suisse YES investors have already incurred substantial losses. Rather than safe increases in returns, UBS YES and Credit Suisse YES investment portfolio holders continue to suffer losses.
Why would UBS and Credit Suisse promote and sell YES? Because, yield enhancement strategies generate substantial fees and commissions. Each YES investment involves multiple fee-generating call and put options. Thus, brokerage firms stand to make a fee and/or commission, regardless of the performance of each individual investor’s portfolio.
Now, YES investors who suffered losses are contacting the securities lawyers at Peiffer Wolf Carr Kane & Conway. Contact Us Today by calling 585-310-5140 or by filling out an online Contact Form for a FREE Consultation. Concerns about possible misconduct and fraud are serious, and we are committed to fighting on your behalf.
UBS YES Investors and Credit Suisse YES Investors Report Significant Losses
The securities attorneys at Peiffer Wolf Carr Kane & Conway are preparing to take action for UBS YES and Credit Suisse YES investors. We are currently investigating on behalf of investors who suffered losses. Since commencing our investigation, we have been focusing on the following:
- Whether or not risks were appropriately disclosed to YES investors
- Whether or not YES was a suitable investment program for individual investors
- Whether or not individual investor’s portfolios were over-concentrated in the YES program
- Whether or not the trading strategy was consistent with the marketed/advertised strategy
- Whether or not the YES program was consistent with individual investor’s stated objectives
Current or Former investor of UBS YES or Credit Suisse YES?
If you invested in UBS YES or Credit Suisse YES and have suffered losses, please Contact the Securities Attorneys of Peiffer Wolf Carr Kane & Conway for a FREE Consultation by filling out a Contact Form or by calling 585-310-5140.
FREE Consultation | 585-310-5140
Contact Us Today by calling 585-310-5140 or by filling out an online Contact Form for a FREE Consultation. Concerns about possible misconduct and fraud are serious, and we are committed to fighting on your behalf.
Get a FREE case Evaluation.
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The Pitch – The Iron Condor Strategy
The Yield Enhancement Strategy (YES) is pitched as an investment strategy designed “to generate returns through the strategic sale and purchase of SPX index option spreads,” according to UBS. “YES returns are incremental to the underlying asset returns and offer clients a way to potentially generate additional cash flow from lower yielding assets.”
One of the most common YES strategies is the use of the Iron Condor. An iron condor is an options strategy that involves four different contracts. According to Investopedia, “When you own an iron condor, it’s your hope that the underlying index or security remains in a relatively narrow trading range from the time you open the position until the options expire. When expiration arrives, if all options are out-of-the-money, they expire worthless and you keep every penny (minus commissions) you collected when buying the iron condor.”
In theory, this option strategy allows you to own positions with limited risk and a high probability of success.
What Happened?
In December 2018, the market experienced extreme volatility, and the YES strategy backfired. In addition to the substantial losses that many investors suffered, many UBS YES investors and Credit Suisse YES investors were forced to contribute additional funds to cover margin calls in this so-called low-risk alternative to traditional investing.
Despite the recent YES strategy backfire, Wall Street’s enthusiasm for the strategy only continues to grow. According to an article in Bloomberg News, “UBS is doubling down on exotic strategies to profit from the intensifying meltdown in the synchronized bull market.”
FREE Consultation | 585-310-5140
If you are a YES investor who suffered losses, contact the securities lawyers at Peiffer Wolf Carr Kane & Conway. Contact Us Today by calling 585-310-5140 or by filling out an online Contact Form for a FREE Consultation. Concerns about possible misconduct and fraud are serious, and we are committed to fighting on your behalf.
