US Virgin Islands bonds
Are you concerned about investment losses in US Virgin Islands bonds? If so, The White Law Group may be able to help you recover your losses through FINRA arbitration.
The White Law Group is investigating the liability that brokerage firms may have for selling US Virgin Islands bonds to their clients. U.S. mutual funds currently hold nearly $1 billion in US Virgin Islands bonds, according to Morningstar.
According to reports, the US Virgin Islands is finding itself in a similar crisis as Puerto Rico.
US Virgin Islands Financial crisis vs. Puerto Rico Financial Crisis
The US Virgin Islands has high levels of debt, mounting pension obligations and a decreasing population.
- The US Virgin Islands’ overall tax-supported debt at $2 billion is much lower than Puerto Rico’s $53 billion in tax-supported debt, however per capita debt is about a third higher: $19,000 in the USVI compared with $12,000 for Puerto Rico, according an article in Forbes.
- Yields are higher than Puerto Rico bonds were at the time, and bond ratings are already junk.
- Per capita debt is more than a third higher, the economy has contracted by significantly more, and both are borrowing to fill long-time massive budget gaps.
- The US Virgin Islands have called off a planned bond sale twice in two months according to reports. With a $110 million budget deficit they recently failed at raising $220 million in new bonds.
The White Law Group is investigating the liability that brokerage firms may have for selling Virgin Islands Public Finance Authority Refunding Loan Note Series C Agm Credit to their clients. Specifically, The White Law Group is investigating the liability that brokerage firm’s may have for recommending this risky investment.
Brokerage firms are required to perform adequate due diligence on any investment they recommend and to adequately disclose the risks of any investment. Additionally, brokerage firms are required to ensure that all investment recommendations made are suitable in light of the client’s age, investment experience, investment objectives, net worth, and income.
If it can be demonstrated that a brokerage firm failed to perform adequate due diligence, to properly disclose the risks, or recommended an investment unsuitably, the firm may be held responsible for any resulting losses in a FINRA arbitration claim.
If you suffered losses invested in US Virgin Islands bonds and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. The firm represents investors throughout the country in FINRA arbitration claims against their brokerage firm.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.