What are 'structured products', anyway?
(Jan 2012)
By Tim Husson, PhD
We've done a lot of work on structured products. And I mean a lot. In addition to our research on valuation and suitability issues, we've devoted a section of our website to informing investors about different types of products, as well as Tear Sheets evaluating several thousand structured products released over the past couple years. We have found that most structured products are issued at a substantial premium, and that many investors (especially retail investors) do...
Welcome to the new SLCG blog
(Jan 2012)
At SLCG we encounter a lot of complex investment strategies and interesting financial products. We have traditionally written up our findings into research articles and published them in peer-reviewed academic journals, but lately we've realized that there are too many interesting topics to devote an entire research project to each and every one.
We support the dissemination of information that can inform and educate everyday investors of both old and new financial products. It would be...
SEC Press Release: New Short Form Criteria
(Jul 2011)
SEC Adopts New Short Form Criteria to Replace Credit Ratings
The Securities and Exchange Commission (SEC) issued a press release today announcing that it had removed "credit ratings as eligibility criteria for companies seeking to use 'short form' registration when registering securities for public sale." The SEC unanimously voted for the adoption of this new rule, in response to the Dodd-Frank Wall Street Reform and Consumer Protection Act that encouraged financial regulators to rely...
FINRA Investor Alert: Asking the Right Questions
(Jul 2011)
The Grass Isn't Always Greener-Chasing Return in a Challenging Investment Environment
The Financial Industry Regulatory Authority (FINRA) published an Investor Alert to help retail investors, who are seeking for higher returns through investing in complex securities such as structured products, ask the right questions before making such investment decisions.
Investors are encouraged to read through the FINRA article. The article includes a section on 'Structured Retail Products', since...
In the News: UBS & Morgan Stanley Subpoenaed over Reverse Convertibles
(Jul 2011)
UBS, Morgan Stanley Subpoenaed Over Reverse Convertibles
Bloomberg news reported today that the state of Georgia had sent subpoenas requesting for data and other information from UBS AG, Morgan Stanley and Ameriprise Financial Inc.. The state is investigating whether these brokerage firms violated the securities laws of Georgia in their sale of reverse convertibles to investors of Georgia.
Sales of reverse convertibles have grown, and investors who are being sold these structured...
SEC Press Release: Forex Ponzi Scheme
(Jul 2011)
SEC Charges Forex Ponzi Operator Who Fled After Scheme Unraveled
The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that it had
"filed fraud charges Thursday against the CEO of a purported foreign currency trading firm, alleging he scammed hundreds of investors with false promises of high, fixed-rate returns while secretly using their money to fund his start-up alternative newspaper."
Lowrance, Chief Executive of First Capital Savings &...
SEC Press Release: State of Municipal Securities Market
(Jul 2011)
SEC Announces July 29 Field Hearing on the State of the Municipal Securities Market
The Securities and Exchange Commission (SEC) issued a press release today announcing that
"it will hold a municipal securities market field hearing in Jefferson County, Ala., on July 29. Topics will include distressed communities, small issuers, disclosure, derivatives and pre-trade price transparency."
The purpose of the field hearing is to understand the relevant issues affecting investors in...
SEC Press Release: Auction Rate Securities
(Jun 2011)
SEC Charges Raymond James for Auction Rate Securities Sales Practices
The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that it had
"charged Raymond James & Associates Inc. and Raymond James Financial Services Inc. for making inaccurate statements when selling auction rate securities (ARS) to customers."
Here is the SEC's Administrative Proceeding.
According to Registered Rep., Raymond James has agreed to repurchase $300 million of ARS...
SEC Press Release: Morgan Keegan fined in connection with CDOs
(Jun 2011)
Morgan Keegan to Pay $200 Million to Settle Fraud Charges Related to Subprime Mortgage-Backed Securities
The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that
"Morgan Keegan & Company and Morgan Asset Management have agreed to pay $200 million to settle fraud charges related to subprime mortgage-backed securities. Two Morgan Keegan employees also agreed to pay penalties for their alleged misconduct, including one who is now barred from the...
