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Municipal Arbitrage Structured Products

The Law Offices of Robert Wayne Pearce, P.A. has handled over 100 cases and investigations involving another form of complex structured products. They are structured credit products crafted from municipal bonds, tender option bonds, swap contracts, swaptions, and sold as "arbitrage", "hedged" and "fixed income" investments to lure in investors with conservative risk profiles seeking to incrementally increase the yields and risk in their bond portfolio. However, according to Attorney Pearce many of the products were not arbitrage, not fully hedged and not fixed income products.

Representing clients throughout Florida and nationwide.

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The so-called municipal bond "arbitrage" strategy was a very complex investment strategy involving multiple investments in the tax exempt and taxable fixed income markets. The fund managers invested in long tax exempt municipal bonds and, in effect, shorted the equivalent of taxable corporate bonds utilizing libor swap contracts and swaptions. The key to the success of the strategy was "market timing" and the "continued correlation" of the tax exempt municipal bond yields and the libor swap contract yields. It was originally used by many banks as a short term trading strategy. But many firms converted it to a flawed long term buy and hold strategy to maximize their own sales commissions and management fees.

The largest issuer of the securities Citigroup, under the Smith Barney division and Citibank divisions, marketed these products as MAT and ASTA. Our firm has handled over 100 MAT and ASTA investor cases in the last three years. Other faulty municipal arbitrage structured products include the Anchor Capital, Aravali, Belvedere Tax Advantaged, Blue River, TW Advantaged and 1861 Capital funds. We have helped our clients recover millions of dollars of investment losses in the so-called “municipal arbitrage” funds.

For more information about our municipal arbitrage cases and investigations involving Smith Barney, Citibank, Deutsche Bank, Merrill Lynch Pierce Fenner & Smith and other issuers of the so-called municipal arbitrate products, click on the links below:

Free Initial Consultation With Municipal Arbitrage Investment Dispute Attorneys

The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in securities, commodities and investment law matters and constantly strives to secure the most favorable possible result. Attorney Pearce provides a complete review of your Municipal Arbitrage case and fully explains your legal options. The firm works to ensure that you have all of the information necessary to make a sound decision before any action is taken in your case.

For dedicated representation by a law firm with substantial experience in all kinds of securities, commodities and investment disputes, contact the firm by telephone at 561-338-0037 or toll free at 800-732-2889 or via e-mail. We may also be able to arrange a meeting with you at offices located in Boca Raton, Fort Lauderdale, Miami and West Palm Beach, Florida and elsewhere.

Client Reviews
Robert Pearce is part of that unusual breed of lawyers that are able to create empathy with clients and thoroughly adopt their cause. No half efforts here. He and his group of professionals are outstanding strategists that can execute with precise fervor and unyielding determination. Theirs is a huge wave of facts, research, precedents and preparation, that has impressed me in its thoroughness and creativity, and most importantly with the results. No stone goes unturned and no effort is ever spared. In my book, he and they are those of a very rare kind that one wants to keep for a very long time. Ramon F.
This law firm is the real deal. We were so lucky that they took our case as they have so much experience in securities and all the wrongdoing that happens in these investment companies where they mislead you and your money (as in our case) into schemes that are not what you think they are. Mr. Robert Pearce is one of the best lawyers around, a truly professional who will fight for you and will tell you as it is all the time. Astrid M.
Mr. Pearce is a great professional and attorney. He led me through every step of the process in a clear, direct and straightforward manner. I highly recommend him as a securities attorney. Rey S.
Just like the song from HAMILTON, it's so nice to have Bob Pearce on your side. He is the consumate plaintiff's lawyer: smart. dedicated, fully able to try a case but a great negotiator in a mediation. He did a wonderful job for us, fully supporting us through the process and more than holding his own against a large national law firm. Maurice Z.
No lawyer except Bob said I had a chance of winning. When Ubs lawyers laughingly offered me zero to settle the dispute, Bob became even more determined to prove everybody wrong. Bob was extremely prepared, and always a step ahead of the opposing attorneys throughout the arbitration. In the end, Bob and I had the last laugh when the arbitrators awarded me almost 6 million dollars. J. Blanco