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D. Daxton White
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The White Law Group is a national securities fraud, securities arbitration, investor protection and securities regulatory/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida. We pride ourselves on providing quality legal services to our clients and handle securities... More
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The White Law Group's Securities Fraud Blog
  • Puerto Rico Bonds Considered Junk By S&P 0 comments
    Feb 5, 2014 2:32 PM

    According to Reuters, Puerto Rico general-obligation bonds have been downgraded to junk-bond status by one of three major bond rating companies, Standard & Poor (S&P). Previously rated BBB-, S&P dropped the rating to BB+ which indicates the bonds are no longer considered investment grade.

    Not only is this troubling news for the US territory, but also for many bond investors. According to Morningstar, approximately 70% of US municipal mutual funds own Puerto Rico municipal securities. Many investors who purchased Puerto Rico bonds through UBS have also been hit hard as a result of heavily concentrated portfolios in Puerto Rico debt securities.

    The White Law Group continues to investigate claims on behalf of investors who suffered losses investing in Puerto Rico debt. Those claims have focused on the liability that brokerage firms may have for recommending such investments.

    Financial advisers and brokers have a fiduciary duty to make investment recommendations that are in the best interest of their clients and must take into consideration a client's risk tolerance, financial objectives, investment experience, age, and net worth in order to make appropriate investment recommendations. If a brokerage firm recommends an unsuitable investment, misleads a client regarding risks, or over concentrates their portfolio, they may be liable and investment losses may be recovered through a FINRA dispute resolution claim.

    If you are concerned about your investment in a Puerto Rico municipal bond or a fund that invested in Puerto Rico municipal debt and would like to speak to a securities attorney about whether you have a potential FINRA dispute resolution claim, please call The White Law Group's Boca Raton, Florida office at 561-807-6804 for a free consultation.

    To read more on the downfall of the UBS Puerto Rico bonds and visit our earlier posts, click here.

    The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

    For more information on The White Law Group, please visit our website at WhiteSecuritiesLaw.com.

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