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Believe it or not, the tiny U.S. island territory of Puerto Rico has a higher legal standard for financial advisors than the SEC requires on the mainland. Puerto Rico has a law that imposes a “fiduciary duty” for financial advisors to follow. That means advisers must act in the client’s […]
Stocks have soared in value the last several years, and a dangerous investment strategy is creeping back into the market: financial advisers may soon recommend that clients tap the equity in their home to buy stocks. Proven disastrous for thousands of investors in the crashes of 2000 and 2008, this […]
Insurance regulators in New York earlier this week beat up the global insurance giant AXA SA pretty good due to shoddy communication with clients about changes the company made to their AXA variable annuity contracts. The $20 million fine against the U.S. arm of the French insurer is the state’s […]
Puerto Rico’s $3 billion bond offering reveals disturbing information that current bond holders should be aware of. Puerto Rico has made some astounding disclosures regarding the new offering, according to a report by Lisa Lambert of Reuters. A draft of the bond issue’s preliminary offering statement warned that a variety […]
Puerto Rico is heading towards a $3.5 billion bond offering this month which would be used to help stabilize the Island’s finances and pay interest on its $70 billion in current debt. A major question arises as to whether investors in this new debt will be given priority over existing […]
The business-friendly U.S. Supreme Court will shortly decide two cases that could impact investors’ recovery rights for decades. The key question is whether the Court will roll back existing law that currently protects investors. The stakes for Mom and Pop investors are huge; if the business lobby wins either of […]
Puerto Rico officials confirmed Tuesday on a conference call what many in the municipal bond market had been anticipating; it will return to the market with the intention to sell close to $3 billion of debt in March. The market will be closely watching this bond offering, as the proceeds […]
After seven years of recession, a ballooning budget deficit and billions in unfunded pension liabilities, Puerto Rico’s bonds last week were downgraded by two agencies, Standard & Poor’s and Moody’s, to “junk” status. The third rating agency, Fitch, is likely to follow the other two agencies and downgrade Puerto Rico […]
UBS Puerto Rico bond investors better look out; the giant investment bank’s research analysts just dropped the first shoe on your heads. Last week, UBS issued a report stating that at least one of the Big 3 rating agencies, Moody’s, Fitch or Standard & Poor’s, will cut a swath of […]
The vulture hedge funds are circling Puerto Rico’s $70 billion municipal bond market and are about to swoop. This is another round of disturbing news for Mom and Pop investors who own UBS closed-end Puerto Rico bond funds as well as the tens of thousands of other investors who own […]