Author Archives: FLSecurities
Merrill Lynch Agrees to Settle SEC Charges Related to Structured Product Collateralized Debt Obligations
The Securities and Exchange Commission (“SEC”) announced that Merrill Lynch has agreed to pay $131.8 million to settle allegations in an SEC administrative proceeding. The SEC’s charges stem from alleged misrepresentations by Merrill Lynch concerning two structured product collateralized debt obligations (“CDOs”) and for allegedly keeping inaccurate books and records for a third CDO…. Read More »
Moody’s Places Puerto Rico Municipal Bonds on Review for Downgrade
An announcement by Moody’s Investors Service states that Puerto Rico’s general obligation rating has been placed on review for possible downgrade. A downgrade in Puerto Rico’s general obligation rating would result in a change of the rating of Puerto Rico’s municipal bonds to non-investment grade. According to Caribbean Business, the review also covers government… Read More »
UBS Puerto Rico Broker Named in 11 FINRA Arbitration Claims Involving Puerto Rico Municipal Closed-End Bond Funds
The headache for UBS Financial Services of Puerto Rico’s executives keeps getting bigger. According to FINRA’s BrokerCheck, one of the company’s Puerto Rico brokers, Jose Gabriel Ramirez, Jr., is currently named in 12 FINRA arbitration cases, 11 of which appear to involve Puerto Rico municipal closed-end bond funds. As of the end of 2012,… Read More »
Why Puerto Rico Municipal Bonds Have Lost Much of Their Value
Puerto Rico muni bonds have been favored by many municipal bond fund managers in recent years because of the tax exempt status of Puerto Rico municipal bonds and their higher-than-average yields. The willingness of U.S. municipal bond fund managers to buy Puerto Rico municipal bonds has allowed the island to rack up $70 billion… Read More »
UBS AG Offers to Repurchase Select UBS Puerto Rico Family of Funds Closed-End Bond Funds Holding Puerto Rico Municipal Debt
According to InvestmentNews, Switzerland-based UBS AG will be extending offers to select UBS clients to repurchase shares of certain funds in the UBS Puerto Rico Family of Funds, 14 proprietary closed-end bond funds containing Puerto Rico municipal bonds. Bloomberg reports that UBS’s limited buyback program will only apply to certain of the 14 closed-end… Read More »
Puerto Rico Municipal Bonds May Be Officially Rated as Junk Potentially Increasing Losses in Municipal Bond Funds That Hold Puerto Rico Debt
Fitch, a nationally recognized statistical credit ratings group, said it may downgrade Puerto Rico municipal bonds to junk bond status by mid-2014. Fitch, Standard & Poor’s and Moody’s currently rate Puerto Rico municipal bonds at BBB-, the lowest investment grade bond rating. Fitch, Moody’s, and Standard & Poor’s all have placed a negative outlook… Read More »
Exchange Traded Fund Focused on Puerto Rico Municipal Bonds May Soon Debut Despite Huge Losses In Puerto Rico Municipal Bond Market
Van Eck Associates Corp. (“Van Eck”) has filed a registration statement with the Securities and Exchange Commission for an exchange traded fund (“ETF”) that will seek to replicate an index that focuses on Puerto Rico municipal bonds. New York-based Van Eck registered the Market Vectors Puerto Rico Municipal Index ETF with the SEC and… Read More »
UBS Financial Services of Puerto Rico Named in FINRA Arbitration Seeking Damages For Losses in Puerto Rico Municipal Bonds Bought on Margin
A prominent Puerto Rico family has filed a FINRA arbitration claim against UBS Financial Services of Puerto Rico for approximately $22 million in losses sustained in Puerto Rico municipal bonds purchased on margin through the UBS Puerto Rico Family of Funds. Victor Gomez Garcia, his wife Socorro Horta Mendez, his daughter Madeline Gomez Horta,… Read More »
Wall Street Seeks to Capitalize on Puerto Rico Municipal Bond Debt
Investors in Puerto Rico municipal bonds have seen huge losses in their accounts over the past few months, but investors in distressed debt are seeing dollar signs. Distressed debt or distressed securities are stocks or bonds of companies or municipalities that are in default, under bankruptcy protection, or at a high risk of defaulting… Read More »
SEC Proceeding Against UBS Puerto Rico Execs Alleging Fraud in Connection with Municipal Bond Funds Dismissed
An Initial Decision (“Decision”) was rendered by the Honorable Brenda P. Murray, Chief Administrative Law Judge for the Securities and Exchange Commission (“SEC”), dismissing an Order Instituting Administrative and Cease-and-Desist Proceedings filed on May 1, 2012 (“Proceeding”). In the Proceeding, the SEC alleged that two executives of UBS Financial Services, Inc. of Puerto Rico… Read More »