Blog

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

Displaying 11-20 out of 62 results for "Muni Arb".

More Non-traded REIT Perfidy: The Roll-up Grift

(Nov 2015)

We have extensively researched non-traded REITs and concluded that these illiquid direct participation programs have cost investors $50 billion compared to more liquid investments in traded REITs. Our Fiduciary Duties and Non-traded REITs provides a good overview of the problems with non-traded REITs and a summary of our empirical results. An Empirical Analysis of Non-Traded REITs contains a more detailed explanation of our research. See our previous blog posts on individual non-traded...

Only a Faulty Auto-liquidator Pays More for An Option Than it Can Ever Be Worth

(Nov 2015)

In two previous blog posts we documented how auto-liquidators appear to have executed option trades at distorted prices to their clients' detriment on August 24, 2015. The price distortions were caused by massive sell or buy orders on thinly traded securities being dumped into the market by auto-liquidation programs. These distortions were reversed within minutes, but not before causing investors millions of dollars of unnecessary losses.

In "The Recent Market Turmoil Spells Trouble for...

UBS Puerto Rico Still Can't Shoot Straight

(Oct 2015)

We've written extensively about the investment carnage caused by UBS Puerto Rico's management and sales of closed end municipal bonds funds. A summary of our findings can be found here: UBS Puerto Rico's Bond Fund Debacle: What We Know So Far .

Others will have to decide whether UBS was just incompetent or also wolfishly indifferent to Puerto Rico investors but recent evidence demonstrates that UBS Asset Managers of Puerto Rico continues to be, at least, incompetent.

The fourteen closed end...

More Signs of Trouble for Auto Liquidators

(Oct 2015)

In "The Recent Market Turmoil Spells Trouble for Auto Liquidators Like Interactive Brokers" we wrote about how the market decline on August 24, 2015 revealed continuing problems at auto-liquidating brokerage firms that cater to active traders. These active traders' accounts typically are subject to "portfolio margin" requirements which we have written about at length. ¹

We showed that thinly traded long-dated, deep out-of-the money SPX put options were bought on August 24, 2015 at...

The Recent Market Turmoil Spells Trouble for "Auto-liquidators" like Interactive Brokers

(Aug 2015)

Interactive Brokers Group, Inc. (IB) caters to active traders including those who trade futures and options. These active traders' accounts typically are subject to "portfolio margin" requirements which we have written about at length. ¹ IB requires its customers to agree to have IB auto-liquidate positions when accounts are in a margin deficit.

IB's auto-liquidation procedures were the focus of a FINRA arbitration earlier this year in which the Claimant, Glen Lyon Long-Term Options, LP,...

Why Citigroup Paid the SEC $180 Million Over MAT/ASTA

(Aug 2015)

I. Introduction

This week Citigroup paid $180 million to the SEC to settle allegations that Citigroup improperly sold high risk hedge funds known as MAT, ASTA and Falcon. The SEC Order is available to view online.

The SEC Order makes clear that Citigroup did not effectively monitor the portfolio manager or the sales force as it sold billions of dollars of high risk MAT ASTA funds with false and misleading sales presentations. In the end, Citigroup lost hundreds of wealthy clients and likely...

Oil and Gas DPPs From Just Two Sponsors Have Caused $3.7 Billion in Losses

(Feb 2015)

We have written extensively about direct participation programs, or DPPs. See our blog posts on non-traded REITs and our discussion about equipment leasing DPPs. Oil and gas DPPs are another strain of the DPP epidemic: illiquid exposure to an existing underlying asset, loaded with confiscatory fees, conflicts of interest and unnecessary risk.

Oil and gas DPPs use some of investors' money to drill and operate oil and gas wells. Oil and gas DPPs are sponsored and managed either by investment...

UBS Puerto Rico's Bond Fund Debacle: What We Know so Far

(Feb 2015)

Over the past year, we've posted a dozen short commentaries to our blog post here. We thought it would be helpful to summarize what we know so far. This summary and our prior UBS Puerto Rico blog posts are available in Spanish. You can find all the Spanish-language blog posts by clicking here.

We discussed the national exposure of the UBS Puerto Rico losses in October 2013 in Trouble in Paradise: UBS Puerto Rico Bond Fund Investors Hit Hard. The losses only got worse thereafter. In calendar...

Lo que Sabemos hasta Ahora de la Debacle de los Fondos de Bonos UBS Puerto Rico

(Feb 2015)

Durante el último año, hemos posteado alrededor de una docena de artículos cortos en nuestro blog (aquí). Pensamos que sería útil resumir lo que sabemos hasta la fecha. Este resumen está disponible en inglés presionando "In English" en la parte superior de esta página. También tenemos las entradas anteriores relacionadas a UBS Puerto Rico en inglés. Todas estas entradas pueden ser halladas aquí.

Nuestro artículo Peligro en la Isla del Encanto: Inversionistas de UBS Puerto Rico Sufren...

UBS Puerto Rican Funds Did Not Belong in Puerto Rican Investors' Portfolios

(Feb 2015)

Over the past year, we've posted a dozen commentaries about the UBS Puerto Rican closed end bond funds to our blog.

In Taxes, Puerto Rico Municipal Bonds and the UBS Funds we show that preferential tax treatment for Puerto Rican investments cannot justify what would otherwise be unsuitable concentrations of investors' portfolios in Puerto Rico municipal bonds. We focused our attention in that post on mainland municipal bond alternatives to Puerto Rican municipal bonds and showed that even...

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