Have You Lost Money after Being Sold Steepener Structured Products?
Of the range of securities sold by brokers, steepener structured notes are some of the most complex and high-risk investments available. If you lost money after your broker or brokerage sold these products to you, contact a steepener products investment loss attorney at the Wolper Law Firm.
We’ve helped wronged investors recover money in 99% of cases we’ve handled.
Securities and financial markets are complicated topics, and investment strategies can involve very technical knowledge. All investors should be informed about the basic workings and risks of the products they invest in, and the securities sold to them by brokerages.
However, some products, such as steepener structured notes, have been known to be unsuitable for and poorly explained to many investors.
If you’ve experienced financial losses after investing in steepener structured notes, call our attorneys at 954.406.1231 or (toll free) 800.931.8452. Ask for a free consultation to learn more about how we can help.
Why Should You Choose the Steepener Investment Fraud Attorneys at Wolper Law Firm?
If you’ve suffered significant financial losses due to poorly advised investments, you don’t want to take any chances on your steepener products investment loss attorney. You will want to work with steepener investment fraud lawyers who have the experience, knowledge, and grit needed to reclaim your losses.
The Wolper Law Firm has recovered money for wronged investors in 99% of the cases we’ve handled.
Attorney Matthew Wolper focuses only on securities litigation and arbitration. He has handled a range of cases involving complex financial products and clients wronged by financial advisors and brokers. Our clients choose us because:
- We have decades of experience in financial law and the securities industry.
- We get results, helping clients recover millions over the years.
- We offer personalized service, on-demand availability, and free consultations to learn more about potential clients and their situations.
- We used to defend brokerages—now, we hold them accountable and help people like you.
Call Wolper Law Firm today at 954.406.1231 or (toll free) 800.931.8452 to schedule your free consultation and to learn more about how we can help.
What Are Steepener Structured Products?
Understanding Structured Products
Steepener structured products are a type of structured product. Structured products include a variety of investments sold to investors, such as market-linked notes, auto-call notes, and steepener notes. Structured products are securities derived from a single index or security, basket of equity securities, commodity, debt issuance, or for currency. Typically, financial institutions design and issue structured products, while broker-dealers sell them to investors, according to the U.S. Securities and Exchange Commission (SEC).
Structured products are very complex and carry significant investment risks. Understanding how they operate and the risks they carry may be beyond most investors’ comprehension. Structured products are supposed to offer specific risk-return tradeoffs, following formulas for potential risk and return. For many investors, that isn’t the case. In terms of interest, structured products often pay enticing “teaser” rates for the first 12 to 24 months. After that, their interest is calculated based on an index or derivative benchmark, meaning interest paid could fall to zero.
Suffered loses with structured products? Contact our steepener products investment loss attorney today at 954.406.1231 or (toll free) 800.931.8452.
At first, steepener notes can offer high “teaser” interest rates, making them initially attractive to investors. But issuers of some structured products can also call, or redeem, them prior to maturity. If interest rates prove favorable to investors and issuers must pay more than expected, issuers can redeem the structured notes, blocking investors’ gains. Despite these issues, some brokerages and advisors have recommended and sold steepener structured products because these products can provide brokers large profits and high commissions.
Steepener Structured Notes and Risk
Steepener notes include various notes and CDs that pay interest based on the steepness or flatness of the yield curve. These structured products are designed to pay returns depending on interest rate differences over time, specifically long- and short-term interest rates. With a big difference between long- and short-term rates, a steep curve forms, offering investors higher returns.
While interest rates are always in flux, long-term and short-term interest rates have equalized in recent times, flattening the yield curve and diminishing steepener structured notes’ value. This, among other variables, has caused steepener notes investors to experience major losses. Further, steepener notes are generally illiquid and are not listed on an exchange. This means that investors cannot sell the investment without penalty or would have to sell with significant losses if the notes are sold prior to maturity, which could be as long as 15 or 20 years.
Why Are Steepener Structured Notes a Risky Investment?
Unfortunately, steepener structured products have been sold to retail customers as a safe product for achieving high yields at times of low-interest rates. Some brokers have sold steepener notes to investors without fully explaining their working or risks. In some cases, too, investments firms may not have fully understood structured products and their disadvantages before selling these products to investors.
After purchasing, too many investors have realized that steepener notes carried more risk than first thought or than was disclosed. However, investors who work with our steepener investment fraud attorneys may be able to recover losses.
I Invested in Steepener Notes. How Can Steepener Investment Fraud Lawyers Help Me?
If you were sold or invested in steepener notes and experienced financial losses, you may be eligible for compensation to recover losses. By speaking with a steepener products investment loss attorney from the Wolper Law Firm, you can find out if pursuing legal action is recommended. Losses may be expected while investing, but no broker or brokerage firm should use deceitful tactics or suggest investment products without being clear about their risks and workings. Because steepener structured products are complex securities, brokers may claim that such products were too complicated to fully explain. However, no broker should act fraudulently or negligently with your finances. If your broker has done just that, call our steepener investment fraud attorneys.
Actions We Will Take to Help You
When you work with us, our steepener products investment loss attorneys will be with you every step of the way. We will look carefully at your situation, help you build a strong case, and pursue the compensation you’re owed. Specifically, our legal team will:
- Take the time needed to learn about your unique situation
- Help prepare and file paperwork and documentation needed to bring a case before FINRA or the courts
- Use evidence to build a strong case to help you get compensation
- Explain all legal processes and actions, including how and why we think a broker acted negligently or fraudulently, when applicable
- Argue on your behalf during arbitration or trial
- Be readily available to answer your questions.
Our steepener investment fraud lawyers are committed to every client we serve and every case we take on. We ultimately want to help defrauded investors reclaim compensation for lost funds and to hold dishonest and fraudulent brokerages accountable. If you’ve been wronged by your broker, let us help make things right.
Common Questions for Our Legal Team
You likely have questions for an attorney if you’re considering legal action and pursuing a claim against a broker or firm. Below are some common questions and answers.
FINRA, or the Financial Industry Regulatory Authority, is a government-authorized organization that oversees U.S. broker-dealers and aims to protect investors against dishonest and unsound brokers and investments. FINRA handles arbitration and mediation for the majority of investment loss claims, and most brokerage firms are bound to arbitration through FINRA. By working with steepener investment fraud attorneys, your claim may be resolved through FINRA’s arbitration process.
You do not have to hire a steepener investment fraud attorney to pursue a claim. Claims can be taken to FINRA arbitration or to court directly. However, hiring a steepener investment fraud attorney is advantageous and could be the difference between a successful or unsuccessful outcome. An experienced attorney who understands the securities market, complexities of steepener structured products, and how brokerages operate can help you build—and win—your case.
Investing will always involve losses and risks. But if you believe your broker or brokerage firm acted fraudulently or negligently, you may be able to build a successful case. An attorney with experience in steepener structured notes should review your case. Because steepener notes have often been improperly recommended and sold to investors, you could consider pursuing a claim if you’ve lost money on these investments.
For many investors, steepener structured products should not be recommended investments. These products carry significant risk that often gets mired in their complexity. Their value depends on interest rate differences, and these investments have generated losses, not gains, for many investors. They’re also illiquid, meaning investors cannot sell them without penalty. Structured products have been recommended by some brokers who were looking to earn high commissions and returns for themselves.
No one can say exactly how long a case will take to be resolved, as it depends on circumstances. According to FINRA, arbitration claims typically take around 16 months to resolve. Cases taken to trial can take longer to resolve, especially if a ruling is appealed.
Make sure you’re fully informed and prepared before pursuing legal action. To have more questions answered, schedule a free consultation with a steepener products investment loss attorney from our firm today.
Seeking Investment Loss Recovery? Contact the Wolper Law Firm
Being sold unsuitable investment products isn’t just immoral—it’s a cause for legal action. Steepener structured products are not suitable investments for most, but that hasn’t stopped brokers from pushing them.
In 99% of the cases handled by attorneys at the Wolper Law Firm, we’ve recovered money for clients.
If you’ve lost money on these products, see how the steepener investment fraud attorneys at the Wolper Law Firm can help. Call us and schedule your free consultation so that we can learn more about your case. 954.406.1231 or (toll free) 800.931.8452