Have you suffered losses investing in Behringer Harvard Priority Income Fund, formerly Priority Senior Secured Income Fund ? If so, the securities attorneys of The White Law Group may be able to help you recover your losses in a FINRA arbitration claim against the brokerage firm that recommended the investment.
Priority Income Fund in an investment portfolio primarily consisting of seniors secured loans or collateralized loan obligations (CLOs). The fund is a closed-end fund that is not publicly traded. As such, the fund does not expect a secondary market to form so investors should not expect to be able to sell their shares.
Fixed-income investors are often attracted to closed-end funds because many of the funds are designed to provide a steady stream of income, usually on a monthly or quarterly basis as opposed to the biannual payments provided by individual bonds.
According to the Prospectus ” These investments [senior secured loans], which are often referred to as “junk” or “high yield,” have predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. They may also be difficult to value and illiquid.”
Closed-end funds will commonly employ leverage to enhance their yields. With this extra leverage comes additional risk. It is this risk that makes closed-end funds unsuitable for conservative investors.
Brokerage firms and financial advisers have an obligation to insure that an investment is appropriate in light of the investor’s age, net worth, income, investment experience, and investment objectives. If a broker or brokerage firm makes an unsuitable recommendation, investors may have an actionable claim to recover their investment losses through a FINRA arbitration.
If you suffered losses in a closed-end fund like the Behringer Harvard Priority Income Fund and would like to speak to a securities attorney about whether you have a potential FINRA dispute resolution claim, please call The White Law Group’s Chicago office at 312/238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, please visit our website at www.WhiteSecuritiesLaw.com.