Derivatives

A “derivative” is a financial contract whose value is derived from the performance of underlying market factors, such as interest rates, currency exchange rates, and commodity, credit, and equity prices. Derivative transactions include an assortment of financial contracts, including structured debt obligations and deposits, swaps, futures, options, caps, floors, collars, forwards, and various combinations thereof.

Financial derivative instruments are highly complex investment products.  Recently, many investment banks and broker-dealers have been charged with fraud relating to their sale of these products to institutional investors.  Each of the institutional investors (including municipalities, states and educational institutions) relied upon representations from their “trusted” financial advisers when entering into the transaction.  Clearly, investment banks and broker-dealers cannot be trusted to be acting in your best interests.  Once the money changes hands, it is difficult, if not impossible to obtain a full recovery of your investment funds.

Whether you are a savvy investment professional or a novice investor, you are encouraged to seek experienced derivative counsel to help you understand the product that you may, or already have, purchased from a financial adviser.  Wittenberg Law has years of experience counseling investment advisers, banks and individuals in these matters.