The law offices of Gana Weinstein LLP are announcing their investigation into potential securities claims against brokerage firms over sales practices related to the recommendation of exchange traded notes (ETNs) and other structured notes linked to oil & gas and commodities. These products are issued by UBS (NYSE:UBS) under the name ETRACS.
List of Commodity and Oil & Gas releated ETNs
Symbol Fund Name
DJCI ETRACS Bloomberg Commodity Index Total Return ETN
UBG ETRACS CMCI Gold Total Return ETN
UBM ETRACS CMCI Industrial Metals Total Return ETN
UBN ETRACS CMCI Energy Total Return ETN
UCI ETRACS CMCI Total Return ETN
UCIB ETRACS CMCI Total Return ETN Series B
USV ETRACS CMCI Silver Total Return ETN
AMU ETRACS Alerian MLP Index ETN
AMUB ETRACS Alerian MLP Index ETN Series B
FMLP ETRACS Wells Fargo® MLP Ex-Energy ETN
LMLP ETRACS Monthly Pay 2xLeveraged Wells Fargo MLP Ex-Energy ETN
MLPB ETRACS Alerian MLP Infrastructure Index ETN Series B
MLPG ETRACS Alerian Natural Gas MLP Index ETN
MLPI ETRACS Alerian MLP Infrastructure Index ETN
MLPL ETRACS 2xMonthly Leveraged Long Alerian MLP Infrastructure Index ETN
MLPS ETRACS 1xMonthly Short Alerian MLP Infrastructure Total Return Index ETN
MLPV ETRACS 2xMonthly Leveraged S&P MLP Index ETN
MLPW ETRACS Wells Fargo MLP Index ETN
Our offices continue to report on investment losses suffered by investors in energy, commodities, and oil and gas related investments that brokerage firms have increasingly recommended to retail investors in recent years. According to Bloomberg, U.S. high-yield debt issued to junk-rated energy companies grew four-fold to $208 billion. Most of these companies are now struggling to stay afloat with oil prices at $45. Investors have been exposed to energy investments through a variety of investment vehicles including private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and even individual stocks.
Oil and gas and commodities related investments have been recommended by brokers under the assumption that commodities prices would continue to go up. Some experts are saying that if production volume continues to be as high as it currently is and demand growth weak that the return to $100 a barrel is years away.
Before recommending investments in oil and gas and commodities related investments, brokers and advisors must ensure that the investment is appropriate for the investor and conduct due diligence on the company in order to understand the risks and prospects of the company. Many of these companies relied upon high energy prices in order to sustain their operations. As reported by the Wall Street Journal the drop in oil and energy prices and the industry downturn has made it difficult for many companies to refinance their debts.
Brokers who sell oil and gas and commodities products are obligated to understand the risks of these investments and convey them to clients. Investors who have suffered losses may be able recover their losses through securities arbitration. Our consultations are free of charge and the firm is only compensated if you recover.