Thursday, March 06, 2014
Wednesday, March 05, 2014
In these trades, Mr. Kim was taking a massive sector bet against the nations' defaulting. The investors in the Willow Fund would therefore benefit if problems in these nations worsened. The Willow Fund had a very solid track record for a few years, returning almost 25 percent on a portfolio of corporate bonds, bank loans and corporate repurchase agreements. During this time, the high risk, specutivate credit default swaps amounted to a minuscule 0.18 percent of the Willow Fund. Unfortunately, in 2007, the Willow Fund's exposure to credit default swaps increased dramticlly. By the end of 2008, corporate bonds amounted to only 6 percent of the portfolio, down from 29 percent a year earlier. The value of the credit default swaps, meanwhile, had ballooned to 25 percent of the portfolio from 2.6 percent in 2007. By 2009 credit default swaps amounted to 43 percent of Willow's portfolio.
For clients who wish to sue UBS for investment losses in the Willow Fund, we believe the FINRA arbitration route may make the most sense. Common claims in FINRA are suitability claims and misrepresentation and omission claims. The FINRA process takes about 12-14 months from beginning to end. Please call us for information on a contingency fee FINRA arbitration claim to recoup Willow Fund losses or visit www.UBS-Willow-Fund.com