SEC Examines Mutual Fund Leveraged Investments

Posted on February 5th, 2015 at 10:25 AM
SEC Examines Mutual Fund Leveraged Investments

From the Desk of Jim Eccleston at Eccleston Law Offices:

The SEC has launched a review of mutual fund companies to monitor their leveraged investments.

Mutual funds that trade in leveraged loans or risky loans of all types have become popular since the 2008 financial crisis, with investors seeking higher-yielding loan products.

Potential risks under those mutual funds frequently include redemption delays. That risk especially is pronounced during turbulent times.

The SEC's position is that leveraged-loan funds need to have clear disclosures so that investors know exactly what they are investing in. The regulator is concerned that those risk disclosure are not sufficiently explicit.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: SEC, FINRA, Mutual funds, advisors, James Eccleston, Eccleston Law LLC

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