Structured debt products with initially high yields are now returning little or no income as well as capital losses
“They were sold as being conservative investments, which of course they are not” – Jeffrey Pederson, Denver attorney who represents investors in settlements against financial institutions
If the curve levels out – as it has been over the past year – buyers can be stuck with measly coupons or even no interest payments
“Your average person getting these things is Joe Salesman, and they end up losing a lot of money pretty quickly” if the curve flattens – Pederson