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Our experts frequently write blog posts about the findings of the research we are conducting.

Displaying 11-20 out of 167 results for "Latest Non-Traded REIT Valuations: Not Good".

Massachusetts Securities Regulators Getting Tough on Non-Traded REITs

(Dec 2012)

LPL Financial, the largest independent broker-dealer in the US, is being sued by Massachusetts securities regulators for "numerous regulatory violations in connection with the sale of non-traded REITs." We have covered non-traded REITs extensively on this blog, as well as in a detailed working paper, and it appears that many of the problems that have been identified with these products are finally attracting attention from regulators.

According to the complaint, the action is specifically...

IBM Switches to Annual 401(k) Contributions

(Dec 2012)

The Associated Press recently posted a story concerning IBM's effort to cut costs by switching from regular contributions to employees' 401(k) accounts on each paycheck to a lump-sum contribution at the end of each year. This move, clearly in the best interest of shareholders, has real and significant implications to the 401(k) accounts of IBM employees. According to the article, only a minority of companies use this type of arrangement.

About 7 percent of employers offering 401(k)s make...

Structured Products Highlight: Citigroup ELKS Linked to YAHOO!

(Dec 2012)

Today we're highlighting a structured product issued on May 25, 2011 by Citigroup. This product (CUSIP: 17317U501) is an Equity LinKed Security (ELKS) linked to Yahoo! (YHOO).

ELKS are similar to reverse exchangeables in that the notes pay periodic coupons (monthly at an annualized rate of 9.50% in this case) and protect principal on a limited basis (if YHOO's price remains above the $13.08 trigger during the term of the note). In contrast to reverse exchangeables, once a trigger event occurs...

SEC Charges Morgan Keegan Directors with Failing to Oversee Asset Valuations

(Dec 2012)

The SEC has charged eight former Morgan Keegan directors with failing to provide accurate valuations for mortgage-backed securities during the subprime crisis of 2007. We wrote a paper in 2009 explaining the collapse of the RMK bond funds and how they relate to these very same securities.

The mutual funds at issue are 1) RMK High Income Fund, Inc.; 2) RMK Multi-Sector High Income Fund, Inc.; 3) RMK Strategic Income Fund, Inc.; 4) RMK Advantage Income Fund, Inc.; and 5) Morgan Keegan Select...

Happy (We Hope) Madoff Day

(Dec 2012)

It was four years ago today that Bernie Madoff was arrested for perpetrating his estimated $65 billion fraud. Coming right on the heels of the SEC and FINRA's year-end investor warnings, Paul Sullivan at the New York Times has suggested that December 11 should be declared Madoff Day, where we reflect upon how to protect ourselves from investment fraud.

Protecting yourself against fraud, or simply bad advice, is easier said than done. The most common advice is to make sure your money is held...

PowerShares to List Actively Managed Downside Hedged S&P ETF

(Dec 2012)

Late last week, Invesco PowerShares filed a form N-1A registration statement with the SEC to list an exchange traded fund (ETF) with exposure to the S&P 500 with downside exposure actively hedged through VIX futures contracts. The PowerShares S&P 500 Downside Hedged Portfolio (PHDG) seeks to "achieve positive total returns in rising or falling markets that are not directly correlated to broad equity or fixed income market returns" and has annual operating expenses of about 39 basis points....

Structured Products Highlight: JP Morgan Reverse Exchangeable Linked to Ford

(Dec 2012)

Today we're highlighting a structured product issued on January 19, 2012 by JP Morgan. This product (CUSIP: 48125VHZ6) is a Reverse Exchangeable linked to Ford Motor Company (F). Investors who purchased the notes were exposed to the possibility that JP Morgan would default on the obligations spelled out in the note's offering documents.

This particular note offered investors monthly coupons at an annualized rate of 11.25% for the six month term of the note. If, during the term of the notes,...

Attractive Yields and Hidden Risks

(Dec 2012)

The Wall Street Journal had a great piece this weekend concerning the investments some investors are seeking out to find yield in this low interest rate environment. Investors are taking on more and more risk to realize the yield they once found commonplace and this article brings a few examples to the forefront.

The risk investors are taking include credit risk (high-yield/junk bonds), market risk (closed-end funds trading at a premium) or some combination of the two (structured products)....

Importance of Timing in Structured Products

(Nov 2012)

We've been looking through some historical issuances of structured products recently and we happened to come across a peculiar product issued by Morgan Stanley in September 2008. The product (CUSIP: 617483664) offered investors bearish exposure to the S&P 500. In other words, if the S&P 500 level declines as of the valuation date of the notes, then the product would exhibit a positive return.

Not only was the return positive if the S&P 500 went down, but it was leveraged six times -- capped...

SEC Litigation Releases: Week in Review - November 30th, 2012

(Nov 2012)

SEC v. John H. Pamplin, Jr.
November 29, 2012, (Litigation Release No. 22550)
According to the complaint (opens to PDF), former TurboChef Technologies, Inc. employee John H. Pamplin, Jr. traded with insider information regarding TurboChef's pending acquisition by The Middleby Corporation in 2008 which resulted in a $68,000 illicit profit. According to the SEC, Pamplin violated the Exchange Act. The SEC seeks "permanent injunctive relief, disgorgement, pre-judgment interest, and civil...

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