Junk Bonds

High-yield bonds, which pay high interest for taking on high risk of the issuer failing to make interest payments and defaulting. Broker-dealers and investment advisers are required to make suitable investment recommendations based on an investor’s age, financial condition, risk tolerance, investment objectives, and sophistication. In order to act in the best interest of investors, broker-dealers are required to avoid over-concentrating portfolios in unsuitable asset classes, which can include junk bonds.

If you have incurred losses due to a broker-dealer or investment adviser advising you to buy a security without properly disclosing its risks, or over-concentrating your portfolio in unsuitably risky assets, contact Rosenberger + Kawabata.