Steepener Structured Products
We represent investors nationwide that were sold certain structured products referred to as “steepeners” which are either notes or CDs that pay varying levels of interest depending on the steepness of flatness of the yield curve. When the yield curve flattened in 2018 and long term interest rates were equal to short term interest rates, these steepeners rapidly declined in value and either ceased paying interest or paid significantly lower interest. In 2019, the yield curve inverted and short term interest rates rose to a higher level than long term interest rates causing even more losses.
The negative impact on investors that invested in the following types of structured products, including, but not limited to, the following has been dramatic: Structured CDs, Market-Linked CDs, Leverage Callable CMS Curve Linked Notes, Callable Quarterly CMS Spread-Linked Notes, Callable Variable Rate Range Accrual CDs, Callable Interest Rate Spread CDs, Senior Callable CMS Steepener Notes, and Callable CMS Spread Notes.
Investors across the United States report being misled by their brokers or financial advisors when they were told that the “notes” or “CDs” were high quality fixed-income investments. In reality, the investments were complex structured products, often with short-term teaser interest rates, long-dated maturities, and obscure features that caused them to lose capital rapidly along with greatly diminished interest payments. Additionally, brokers represented to their clients that the steepeners they solicited and sold to them paid an attractive “yield.” Brokers cited the high credit rating of the issuer in order to induce clients to invest, and some touted the supposed safety and the so-called yield as the central selling points without fully and adequately disclosing the key features and risks attendant to the structured products they were recommending. Furthermore, many brokers employed a strategy of concentrating their customers in these structured products.
We are investigating and claims against brokerage firms including Centaurus Financial, Inc., J.P. Turner & Company, LLC, Aegis Capital Corp., Wells Fargo Advisors, and other brokerage firms for structured products investment losses. Please call us if you purchased steepeners through Ricky Mantei (CRD# 1098981), Cindy Chiellini (CRD# 1015592), Katherine Nishnic (CRD# 2499553), Dana Matthew Hawkins (CRD# 5731136), Alan Applebaum (CRD# 500336) or Joseph Andreoli (CRD#1718688).
We have been retained by many investors to file FINRA arbitration claims against brokerage firms to recover their losses. Our firm has been very successful in making recoveries for our clients throughout the United States for investment fraud and has recovered over $125 million for investors. Was it just the market or were you mislead to invest in unsuitable steepener investments? Call Attorney Pearce at 1-800-SEC-ATTY (732-2889) with any questions you may have about how you may recover your steepener investment losses.