Investors complaining about crashing bond portfolios may be able to recover bond losses with the help of Soreide Law Group.
Recently, the federal funds interest has risen for the ninth time since March 2022 to a new high of 4.75-5.00%. Not too long ago, in 2017, the Federal Funds rate was 1%. Rates just 5 years later are 500% higher. If you were sold municipal bonds or any bond or bond fund before 2022, your bonds would be trading significantly below par at a substantial loss. The price and yield are inversely correlated such that when the price of a bond goes up, its yield goes down and vice versa.
Learn more at https://www.securitieslawyer.com
The price of a bond goes down even further the longer dated the bond is to maturity. Recently, Soreide Law Group has received calls from many bond investors where their financial advisors recommended long dated bonds that go out 20 or even 30 years that, at the time of the sale, were paying a then-generous 2%-3%. Some of the bonds, depending also on credit quality, are trading at a 50% discount or half their value to what investors paid. Bond funds can be hit even harder since there is no maturity date whatsoever.
Bond investors are in a tough spot with long-dated maturities on their bonds since many elderly bond holders unfortunately won’t live long enough to see a 20- or 30-year maturity happen where the bonds are supposed to redeem at par. The securities law firm, Soreide Law Group, located in South Florida, is filing claims against financial institutions and advisors who didn’t sell their clients long-dated bonds when the Federal Reserve announced in early 2022 that it will be aggressively raising rates.
Brokerage firms will not be able to use the defense of they could not see the rate hikes coming as inflation raged firms such as Goldman Sachs forecasted 7 Fed interest rate hikes in 2022, and similar firms had published other projections that no financial advisor should have ignored including Wells Fargo, Morgan Stanley Cetera, and JP Morgan.
Soreide Law Group handles these types of bond investor claims on a contingency basis so investors don’t have to pay anything unless the securities lawyers at Soreide Law are successful in recovering their bond losses. Soreide Law represents bond investors and all investors nationwide through the Financial Industry Regulatory Authority, aka FINRA.
Call 888-760-6552 or visit https://www.securitieslawyer.com for a free consultation concerning your bond losses today.
