Did Your Broker Recommend AMJL?

Investors Could Have Sustained Big Losses On Credit Suisse X-Links Monthly Pay 2xLeveraged Alerian MLP Index ETN

Soreide Law Group is reviewing investor claims against brokers or advisors who recommended Credit Suisse X-Links Monthly Pay 2xLeveraged Alerian MLP Index ETN (NYSEArca: AMJL). Notably, AMJL closed at $1.20 on March 18, 2020--the last day it traded. At close on March 18, AMLJ, managed by Credit Suisse AG—a major financial services provider—had a -84.50% YTD daily total return and -54.90% 3-year daily total return.

AMJL Undergoes Mandatory Redemption

Evidently, on March 9, 2020, AMJL went through a mandatory redemption because of its value falling below a five dollar threshold. According to Credit Suisse’s press release, the date triggering this was March 9, 2020 at which point AMJL traded at $2.10. Notably, the mandatory redemption compelled the issuer to make an earlier redemption than the expected closure date. NYSE allowed AMJL to continue trading until March 18, 2020. Apparently, investors who bought AMJL for an amount in excess of the acceleration amount sustained losses. Also, it appears that investors who sold AMJL for less than the acceleration amount sustained losses. Overall, many investors could have sustained big losses by investing in AMJL.

A Word About ETNs

ETNs are unsecured and unsubordinated debt securities. They aim to track an underlying index of securities rather than providing investors with ownership of the securities and they trade like stocks on a major exchange. Although ETNs allow investors to earn a profit when the index is higher at its maturity, they are not principal protected and do not make interest payments like bonds do. There are also risks relating to liquidity and tracking an index, and risks associated with the issuer including default, use of options to achieve returns, and mandatory redemptions such as the case with AMJL. For this reason, it is important for brokers and advisers to only recommend these investments after taking into account the client’s suitability information such as the client’s objectives, risk tolerance, age and financial needs.

Losses From Investing In AMJL?

Have you experienced losses by investing in AMJL because of your broker or advisor? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have incurred losses due to misconduct of securities firms and investment advisories along with their representatives.