Miami Structured Notes, Structured Products & Market-Linked Notes Attorney

A structured note is generally a “hybrid product” which combines characteristics of a promissory note and options. Structured notes can be “linked” to almost any security, index, commodity, currency, or any other product where options are available.

Many structured notes give the investor false sense of security. Financial advisors or brokers often misrepresent the notes to be “principal protected,” “guaranteed, or even “insured.” Many financial advisors also claim that structured notes are built with options and bonds. This is almost always false. Structured notes are usually designed to perform similar to the combination of a bond and option, however, the investor almost never actually owns a bond or an option. The investor usually owns an unsecured note from the issuing bank.

The hidden risk in a structured note is that its success is usually dependent on the success of the issuing entity. If the issuing entity goes under, the investor may not be paid back, including any upside potential that was promised.

When Lehman Brothers collapsed, investors holding Lehman Brothers structured notes lost almost their entire investment. Many of these notes were called “principal protected,” even though there was actually no principal protection.

Carlson & Associates, P.A. has experience in handling cases involving structured products. Contact our Miami investment fraud attorneys for more information.

Contact our Miami Investment Fraud Attorneys

Carlson & Associates, P.A. has years of experience helping Miami clients with investment fraud, corporate & partnership disputes, officer liability and coverage & legal and accounting malpractice. Contact us online or call 305-372-9700 for more information or assistance.