Are You An Investor Who Suffered Losses in Autocallable Structured Notes?
Contact Our Skilled Structured Product Fraud Attorneys For A Free Case Assessment
If you sustained losses in an autocallable structured note that was marketed and sold to you by a financial advisor, you may have grounds for a claim for damages. The Shepherd Smith Edwards and Kantas Structured Product Law Firm (investorlawyers.com) is available to talk to you during an initial case consultation to help you determine what legal steps, if any, you should take.
What Is An Autocallable Structured Note And How Can It Lead To Investor Losses?
This can be a risky investment even for sophisticated, rich investors. Like all structured notes, this is a debt obligation with a derivative component whose performance is usually connected to an underlying asset. What makes a structured note an autocallable one is that it comes with a coupon that is only available if the note matures prior to the set maturity date.
The structured note is auto-called (automatically matured) if the reference asset reaches or exceeds its initial level on a predetermined observation date. Payment when the note is autocalled can vary, from a full return of principal to the loss of principal.
Illiquidity can depend on whether the structured note has a short maturity of mere months or several years. However, because autocallable notes are not available on any exchange, a secondary market for trading them is not guaranteed.
Not only that but also pricing is determined using an internal valuation model, with the initial estimated value usually less than the note’s price. This means that the investment amount typically exceeds the estimated value.
Depending on what the linked index or asset is, the market risk may involve changes in commodity prices, equity, interest rates, or market volatility. Also, a structured note is an unsecured debt obligation of the issuer, which means the latter has to make payments that were promised. If the note defaults on these obligations, investors can lose some or all of their principal along with other payments that are due.
Given all of these risks, broker-dealers have a duty to conduct the proper due diligence so that they don’t unsuitably recommend an autocallable structured note to an investor for whom this type of structured product is not a good fit. Serious investor losses can result.
How Can Our Autocallable Structured Note Loss Recovery Law Firm Help?
Our seasoned Structured Product Law Firm understands the complexity of these kinds of investments, including autocallable structured notes. We know how to recognize when unsuitability, misrepresentations and omissions, breach of fiduciary duty, negligence, due diligence failures, or gross negligence played a part in your investment losses.
For more than 30 years, Shepherd Smith Edwards and Kantas has been fighting for investors in pursuing the damages they are owed by broker-dealers and investment advisors.
How To Contact Our Structured Product Law Firm:
This is not the kind of investment recovery claim that you want to make without skilled autocallable structured note lawyers by your side. Call (800) 259-9010 or fill out this form.