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FINRA Proposes Enhancements to Protect Senior Investors from Financial Harm

On April 16, 2020, the Financial Industry Regulatory Authority (FINRA) issued an alert which stated that “there is no higher priority for FINRA than protecting senior investors from financial exploitation. Thus, every year we bring dozens of enforcement actions against brokers who harm senior investors, either through fraud schemes, conversion, churning of accounts, or otherwise.” […]

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Investor Recovery of Midstream Master Limited Partnership (MLP) Losses

On April 3, 2020, in a research note to clients (“Navigating Credit Risks in the Midstream Sector”), Bank America – Merrill Lynch noted that the rating agency Standard & Poors believes that “over 40 producers” in the midstream energy sector “will be rated in the CCC category” and that it “sees potential for bankruptcies or […]

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Master Limited Partnerships (MLPs) Investor Losses Mount

On March 17, 2020, Fitch Ratings downgraded senior notes to ‘A’ from ‘AAA’ and preferred shares to ‘BBB’ from ‘AA or ‘A’ of 10 midstream energy closed-end funds (CEFs) following severe declines in portfolio values that eroded the funds’ asset coverage ratios. Fitch also placed all securities on Rating Watch Negative reflecting the potential for […]

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UBS ETRACS Investor Losses

Aidikoff, Uhl & Bakhtiari is investigating UBS Financial Services, Inc. (“UBS”) for possible sales practice violations, including but not limited to failing to disclose material risks associated with its ETRACS product. ETRACS Exchange Traded Notes are senior, unsecured, unsubordinated debt securities that are designed to track the total return of a specific market index. Exchange-Traded […]

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REITs come under selling pressure, losses to mount

Real estate investment trusts (REITs) that purchase mortgage-backed securities are playing a prominent role in the current market turmoil, dumping their holdings in response to margin calls by their banks. The mortgage Reits entered the coronavirus crisis owning an estimated $500bn of bonds backed by property loans and have come under pressure because they use […]

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