Invesco Rochester Municipal Opportunities Fund (ORNYX) – Investigating Claims
Did your financial advisor recommend investing in a high yield bond fund such as Invesco Rochester Municipal Opportunities Fund (ORNYX)? If so, the securities attorneys at the White Law Group may be able to help you.
The Invesco Rochester Municipal Opportunities Fund (ORNYX) reportedly invests in municipal securities issued by the governments of states, their political subdivisions and the District of Columbia, U.S. territories, commonwealths and possessions or by their agencies, instrumentalities and authorities, according to its profile on Yahoo Finance.
Invesco Rochester Municipal Opportunities Fund (ORNYX) is down –9.42% YTD, according to Yahoo.
High Yield Bond Funds – Junk Bonds
Your financial advisor or broker may have recommended chasing yield due to rising interest rates, in the way of high-yield or “junk” bonds, which typically pay a higher return and may help offset price declines in your bond portfolio. But these assets come with higher risks.
Bonds have a credit rating system to grade an issuer’s ability to cover interest payments and loans by the maturity date. Junk bonds earn credit ratings of BB or below from ratings agencies such as Standard & Poor’s (S&P) or Fitch or a rating of Ba or below from Moody’s.
High-yield bonds may act like stocks, performing well when the economy is strong, but prices can take a dive in a downturn. Another consideration is the “duration,” which measures the bond’s sensitivity to interest rate changes, based on the coupon, time to maturity and yield paid through the term. Often, the longer the bond’s duration, the more likely it may be affected by future rate hikes.
Are High Yield Bonds a Suitable Investment for you?
Brokerage firms and investment advisors are required to make investment recommendations that are suitable for their clients in light of their clients’ particular investment situation – net worth, investment objectives, income, and investment experience. Brokerage firms or advisors who sell junk bonds to unsuitable investors or fail to adequately disclose the risks of the investments can be held accountable for losses suffered through a FINRA arbitration claim.
If you have concerns regarding your investment in Invesco Rochester Municipal Opportunities Fund (ORNYX) or another high yield bond and would like to speak with a securities attorney about your litigation options, please call The White Law Group at (888) 637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
To learn more about The White Law Group visit www.whitesecuritieslaw.com.