June 1, 2018 Comments (0) Blog, Current Investigations

Credit Suisse VelocityShares Daily Inverse VIX Short Term ETNs (XIV) Investigation

VelocityShares Daily Inverse VIX
(Last Updated On: June 1, 2018)

Concerned about investment losses in VelocityShares Daily Inverse VIX Short Term ETNs?

Have you suffered losses investing in VelocityShares Daily Inverse VIX Short Term ETNs? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses through FINRA Arbitration.

XIV ETN Investors suffered heavy losses on February 5, 2018, when shares dropped 94% in one day.

According to analyst reports, Credit Suisse stated in its Pricing Supplement that it would publish an estimate of the current economic value of XIV every 15 seconds based on real time VIX futures prices but did not. Many investor lawsuits have reportedly been filed with allegations that Credit Suisse failed to update investors regarding the value of XIV shares, and question whether XIV was subject to price manipulation.

Recovery of Investment Losses in VIX short term ETNs

The White Law Group continues to investigate the liability that brokerage firms may have for recommending complex and risky ETNs like VelocityShares Daily Inverse VIX Short Term ETNs.

An exchange-traded note (ETN) is a senior, unsecured, unsubordinated debt security issued by an underwriting bank. Similar to other debt securities, ETNs have a maturity date and are backed only by the credit of the issuer. ETNs are designed to provide investors access to the returns of various market benchmarks.

According to Credit Suisse, these products are intended as trading tools for sophisticated investors to manage daily trading risks and should be purchased only by “knowledgeable investors who understand the potential consequences” of investing in volatility indexes.

Further, the Credit Suisse XIV prospectus says on page 197: “The long term expected value of your ETNs is zero. If you hold your ETNs as a long-term investment, it is likely you will lose all or a substantial portion of your investment.”

If you suffered losses investing in VelocityShares Daily Inverse VIX Short Term ETNs at the advice of your financial advisor, the securities attorneys of The White Law Group may be able to help.  For a free consultation, please call the firm at 888-637-5510.

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 exclusively represents investors in FINRA arbitration claims against their brokerage firm or financial professional.

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

 

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