Another UBS Lie Exposed: “Everything Will Be OK”
Many investors victimized by sales of Puerto Rico bond funds by their Merrill Lynch and UBS brokers still haven’t come forward to sue. Unfortunately, investors were told by their brokers that the value of the Puerto Rico bond funds would come back in value in the near to intermediate future and investors should simply be patient and wait. Some brokers pointed to the rebound in the net asset value (NAV) of Puerto Rican bonds in the last 12 months as “proof” that things were improving and not to sue. Unfortunately, the surge was only short lived.
Investors received a major shock when the Commonwealth passed a law recently that gave its government-controlled corporations the ability to restructure their debt. Until that point, some investors assumed that the government of the U.S. territory would stand fully behind the bonds, although there was never a promise to do so. The impact on investors who continue to hold the UBS and Merrill Lynch recommended bonds has been substantial. The benchmark Barclays High Yield Municipal Bond Index, which had been up more than 9.5 percent for the year as of mid-June – when it looked like it was going to have its best year since record-beating returns in 2009 – is now up only 5.9 percent. The drop is expected to continue.
We encourage burned clients in Puerto Rican mutual funds recommended by UBS and Merrill Lynch brokers to contact us before the statute of limitations expires for a free analysis as to whether those losses can be recovered on a contingency fee basis.
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