May 15, 2016 Comments (0) Blog, Current Investigations

Update: EV Energy Partners

(Last Updated On: March 31, 2017)

Have you suffered losses investing in EV Energy Partners LP 8% 04/15/19 bonds?  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.

EV Energy Partners is an upstream master limited partnership focused on generating distributions to its unitholders through the acquisition, operation, and development of oil and gas properties. Crude oil prices have crashed over the past two years, bringing the Energy Sector down with it. According to reports, EV Energy partners has $665.8 million in total outstanding debt. With a decline in the earnings, their leverage is also high. We have to wait and see how this upstream MLP will manage to stay afloat in the current commodity price environment.

High-yield bonds—also called non-investment-grade bonds, speculative-grade bonds, or junk bonds—are bonds that are rated below investment grade, typically ‘BB’ or lower by Standard & Poor’s and ‘Ba’ or lower by Moody’s. They pay high yields to bondholders because the borrowers credit ratings are less than pristine, making it difficult for them to acquire capital at an inexpensive cost. Junk bonds carry an above average risk that the issuer will default on the bond. The increased risk makes them arguably unsuitable for many investors.

Brokerage firms that sell such products are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives.  Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim.

If you suffered losses investing in EV Energy Partners LP 8% 04/15/19 bonds and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

To learn more about The White Law Group’s investigation of EV Energy Partners, click here.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.