I own bonds yet my investments have plummeted in value. Can I recover those bond losses?

All investments must be suitable for the investor in light of age, liquidity needs, risk tolerance, investment objectives and all market conditions. Moreover, the risks and features of an investment must be adequately explained, including what could happen in a down market such as what we are experiencing with the Coronavirus.

Bond losses thus can be recovered if those bonds were not suitable, the risks were not adequately explained, or if any of the following occurred:

  • The corporate bonds were lower credit quality, junk or "high yield" bonds
  • The municipal bonds or state-issued bonds were "revenue" bonds (also known as "limited obligation"), thereby not backed by the full faith and credit of the issuer
  • Those bonds were the great majority of the investment portfolio as the portfolio was not "asset allocated" among stocks, cash and other investments
  • The bonds were not diversified among issuers (corporate, municipal and state), were not diversified among industry, and were not diversified in duration /length
  • The bonds were part of an ETF bond fund or bond mutual fund and the risks of investing in those bonds that way – instead of simply owning individual bonds myself -- was not adequately explained to me
  • The "bonds" actually were "reverse convertible notes", "reverse convertible bonds", or "leveraged loans" (also known as "floating rate loan funds"), which are highly complex, risky and unsuitable for most investors

If you or someone you know incurred losses with bonds and any of the above happened, we recommend contacting us for a no-charge consultation. Most investors file claims in FINRA arbitration to recover their losses, and most claims are brought on a "contingency fee" basis.

 

Categorized in: Covid FAQs

Related Questions

View More Answers

TESTIMONIALS

Previous
Next

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

April 16, 2025
GWG Bondholders Offered Settlement Worth Just Cents on the Dollar

Distressed investors who purchased $1.6 billion in GWG L bonds may soon receive a small fraction of their original investment under a proposed settlement.

April 15, 2025
Stifel Ordered to Pay $133 Million in FINRA Arbitration

Stifel Financial’s retail broker-dealer must pay nearly $133 million in damages following a FINRA arbitration tied to Miami-based advisors' structured note strategy.

April 14, 2025
Former UBS Advisors Sue Firm Over Unpaid Wages and Business Expense Deductions

Two former UBS financial advisors have filed a class action lawsuit accusing UBS of failing to reimburse necessary business expenses, unlawfully deducting costs from wages, and delaying payments to employees who quit or were terminated.