Residents in Jacksonville who have suffered losses after following the advice of a broker or brokerage firm now has an ally in the Soreide Law Group.
Recently, the federal funds interest has risen for the ninth time since March of 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 the year 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.
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, which, 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 not foreseeing the rate hikes, 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.
For bond investors who have experienced losses and wish to take legal action against their financial advisors, more information regarding investor resources can be found on https://www.securitieslawyer.com
Soreide Law Group handles these bond investor claims on a contingency basis, meaning investors are not required to pay anything unless the securities lawyers at Soreide Law successfully recover their bond losses. The firm represents bond investors and all investors nationwide through the Financial Industry Regulatory Authority, or FINRA.
For a free consultation concerning your bond losses, call 888-760-6552 today.