Could Your “Safe” Investments Be Riskier Than You Think?
Investment fraud attorney Jake Zamansky discusses the latest concerns for investors in TalkMarkets.
Wall Street is at it again. They are dumping their private credit funds ( that are experiencing huge losses and investor redemptions) by packaging them into a “bond” seeking a Moody’s rating of “A”. These new “bonds” are referred to as “collateralized fund obligations” or CFOs. These CFOs are now being offered by Financial Advisors as “safe and secure” fixed income investments to retail investors.
Estimates are that between $1 trillion and $1.75 trillion of CFOs and similar products are being marketed to institutional and retail investors.
If the economy turns, private credit funds will implode as did the subprime mortgages in 2008. It won’t be long before these CFOs follow the same path as the CDOs did in 2008.
Contact investment fraud attorney Jake Zamansky to see if your “bonds” are fraudulent private credit investments being dumped by your brokerage.