How Did the Supposedly “Low Risk” UBS Yield Enhancement Strategy Go So Wrong?

Imagine being able to limit your losses and predict your profits. Sounds too good to be true, right? UBS investors were told that the firm’s Yield Enhancement Strategy, or YES, was a sure thing. UBS pitched the YES strategy to clients as a neutral or low risk way to generate returns through an options trading …

Puerto Rico Bond Restructuring Is Up In The Air

Puerto Rico’s efforts to restructure its $120 billion debt load rested largely in the hands of a federal board that was empowered in 2016 under the Puerto Rico Oversight, Management and Economic Stability Act, or PROMESA. PROMESA’s board, known in Puerto Rico as “La Junta” or fiscal control board, has been making significant progress in …

Breaking Down Yield Enhancement Strategies and How They Fail

Yield enhancement strategies (YES) are high-risk investments that can result in substantial losses. They are also highly-complex; and, as a result, they are only suitable for the most-sophisticated of investors. If you have lost money in a YES investment, here are some of the key terms you need to know: Yield Enhancement Strategy A “yield …

Yield Enhancement Strategy Turns Into Wealth Destruction Strategy

Last month, this blog reported that a complex, risky investment strategy had blown up as the market plunged at the end of 2018. The so called “Yield Enhancement Strategy,” or YES was pitched by UBS financial advisors to their customers as a supposedly safe and efficient mechanism to enhance yield from a generally conservative portfolio. …

Expected Market Volatility During 2019 Could Spell Trouble for “Iron Condor” Investors

The “iron condor” is an extraordinarily complex investment product. A form of “yield enhancement strategy,” or “YES,” it involves making at least four separate options trades with the hope that none of the options will actually reach their strike price so that the investor can pocket a modest “option premium.” With an iron condor, the …

UBS, Credit Suisse and Other Wall Street Firms Continue to Face Scrutiny for Yield Enhancement Strategy (YES) Investments Sold to Individual Investors

Similar to all other consumer industries, there are fads in the retail investment market. One recent fad promoted by big Wall Street banks like UBS and Credit Suisse is the “yield enhancement strategy,” also known by the acronym, “YES.” Despite its catchy name, and despite being pitched as a low-risk alternative to traditional investing, the …

Wall Street Continues to Push Yield Enhancement Strategies (YES) Despite the Risks

There is no question that yield enhancement strategies (YES) present substantial risks for individual investors. There is also no question that most individual investors lack the in-depth knowledge of options, margin, puts, calls and other relevant investment concepts needed to make informed decisions about investing with yield enhancement strategies. But, this has not stopped Wall …

January Stock Market Bounce Leads To Dangerous “Risk Off” Sales Pitch To Investors

As the stock market stabilizes from the devastating fourth quarter of 2018, investors must be wary of brokers pitching “risk off” trades. First, let’s define “risk-on risk-off.” It refers to changes in investment activity in response to global economic patterns, according to Investopedia. During periods when risk is perceived to be low, investors tend to …

Yield Enhancement Strategy Losses? Call Zamansky, LLC

Investment Fraud Attorneys for Claims Related to Complex Options Strategies, including the UBS “Yield Enhancement Strategy,” and “Iron Condor” Losses When you invest with a brokerage or advisory firm such as UBS Financial Services, Credit Suisse, Merrill Lynch, or Morgan Stanley, there is no shortage of investment options available. When you seek advice from your …

The Leveraged Loan Ticking Time Bomb

In 2008, the subprime mortgage market crashed and led to a severe global recession. History may be repeating itself. The $1.3 trillion leveraged loan market appears ready to threaten the U.S. financial system and investor portfolios. Leveraged loans are made by lending syndicates to speculative companies with junk grade credit. The money is often used to …