Recent articles and reports reveal 90 companies with over $66.5 billion in total debt have defaulted on bonds issued to investors just like you. Some of these companies include well-known companies such as Linn Energy, Linn Co., Alpha Natural Resources, Arch Coal, Sandridge Energy and many others that were highly touted by large Wall Street firms just a few years ago.
In an article published earlier today in USA Today, there is a report that corporate bond defaults in the United States are expected to increase with a 30% jump predicted in bond defaults in the year to come.
Although this is not quite on par with the widespread losses incurred by investors in 2008-2009 during the financial crisis the investors who are experiencing these losses are no less impacted when it results in lost principal and it negatively impacts their financial security.
Just because the majority of bond defaults and much of the loss has taken place in the oil and gas industries or within the energy sector does not mean that individual investors have been spared.
While the stock market indices are at or near record highs many investors, particularly those at or near retirement opted for what appeared to be safer and more conservative asset classes including corporate bonds in an effort to spare themselves the risk and volatility of investments exposed to the stock market. Unfortunately many of those investors now find themselves not only missing out on market returns, but also incurring substantial principal losses and as defaults increase their income stream from these investments are also being interrupted and that is negatively impacting their financial security as well as their lifestyle or plan for retirement.
Faced with substantial declines and losses in what were believed to be safer more conservative investments some investors are considering or pursuing securities arbitration and investment litigation lawyers in an effort to help them potentially recover their losses and address these issues.
Investors in many cases are finding the loss of principal from their corporate bond investments particularly troubling as they are no longer I a position to replace that principal or at an age where they can afford to wait for the market to potentially come back years down the road. In many cases the (realized or unrealized) loss of principal is something that should never have occurred in their portfolio in the first place.
Regardless of their age, employment or retirement status, the devastation of lost principal from corporate bond defaults is no less real or less painful to the individuals that suffered these losses. Whether the bonds were unsuitable when they were sold to you, or later became unsuitable, they were not appropriate for many investors. What’s more, as the market for these issuers and these securities deteriorated the advice, recommendations and the level of supervision that many firms exercised over their financial advisors and their clients’ accounts appears highly questionable and in many cases should be challenged.
If you have suffered significant losses (realized or unrealized) in corporate bonds in or outside of the energy sector, you may have a case to potentially recover your investment losses through a FINRA arbitration claim.
FINRA arbitration claims are generally expedited confidential proceedings and for more information about the law firms or the lawyers that have experience handling these types of claims, we can help you. For more information please visit oilgasfinraarbitration.com or call 1-800-975-4345 for a free confidential consultation to discuss a potential recovery of your investment losses. Our attorneys represent clients nationwide in securities arbitration cases to recover investment losses. No recovery, no fees.