Massachusetts Regulator Investigates Puerto Rico Bond Investments
William Galvin, the leading securities regulator in Massachusetts, has sent inquiries to various financial firms as part of his investigation into sales of Puerto Rico municipal bonds to Massachusetts investors. The inquiry was sent to UBS Financial Services (UBS), Oppenheimer Funds, and Fidelity. Mr. Galvin is concerned that municipal bond fund investors may have been exposed to too great a concentration of Puerto Rico bonds. He also is concerned about whether investors were give proper warnings about the risks of the bonds, and whether the bonds’ prices were accurately reported.
Many municipal bond funds invested heavily in Puerto Rico municipal bonds to take advantage of the attractive yields. But the attractive yields may have caused some fund managers to over-concentrate bond funds in risky Puerto Rico municipal bonds. For example, nearly 17% of the Oppenheimer Rochester Massachusetts Municipal Fund’s assets, $69 million were invested in Puerto Rico municipal bonds.
Investors have been suffering significant investment losses in Puerto Rico municipal bonds as Puerto Rico’s economy continues on a years long downward spiral.
If you lost money in Puerto Rico bonds or funds that invested in Puerto Rico municipal bonds, contact one of our Puerto Rico bond lawyers for free consultation to discuss your ability file a