UBS promoted it’s Yield Enhancement Strategy (“YES”) program as a trading strategy based on an option that sought to increase returns to investors who provided a certain minimum amount of their portfolio (called “Mandate”) for the YES program. The investors were often presented with a presentation, or a “slide deck,” indicating that the YES program would be described.
UBS investors have begun to see substantial losses in their portfolios in December 2018. These losses continued to increase even as many investors began to show serious concerns about the direction of their portfolios and the trading strategy.
UBS Yield Enhancement Strategy Lawsuits
The investment fraud lawyers, Haselkorn & Thibaut have filed claims on behalf of UBS investor who lost money invested in the UBS Yield Enhancement Strategy. The claims were filed against UBS.
They are seeking compensation for the loss of investors in the light of the trading strategy and risk exposure associated with the YES program, among other things. The claims focus on a number of important issues, including (1) whether the UBS Yield Enhancement Strategies adequately and adequately exposed significant risks to the YE program; (2) whether the YES program is appropriate to the investment profile of those investors; (3) whether certain investor portfolios may be over-concentrated in the YES program; and (4) whether the actual trading strategy was in line with the strategy announced in YES presentation and brochures.
Securities attorney Haselkorn & Thibaut are working with other Yield Enhancement Strategy investors and intend to continue to file claims for compensation on their behalf. Investors may contact the investment fraud law firm 1 888-628-5590 for additional information or free evaluation of their legal options.
Market Reports Today
USD is weakening against GBP, strengthening against EUR and is moving horizontally against JPY.
Investors are focused on the comments of the head of the Federal Reserve Bank of Chicago Charles Evans. In a CNBC interview, he noted that over the past six months, the US economy had experienced difficulties with inflation reaching its target level of 2.0%. Moreover, the Fed rate cut might not be the last step in the correction of monetary policy, and depending on the situation, the rate might still change. Evans also said that the confrontation between China and the United States was unnerving investors, forcing them to reduce investment but any transaction would be welcomed by the market.
EUR is weakening today against its main competitors – JPY, GBP, and USD.
EUR is under pressure of negative inflation data in Germany. According to preliminary data, the consumer price index for September amounted to 0.0% MoM instead of an increase of 0.1% MoM. On an annualized basis, inflation growth slowed more than the market expected: from 1.4% to 1.2%. These data may indicate the insufficiency of measures to support the EU economy adopted at the September meeting of the ECB. August retail sales statistics in Germany were ambiguous. The indicator grew by 0.5% MoM and by 2.3% YoY, which turned out to be lower than market expectations.
GBP is strengthening against its main competitors – EUR, JPY, and USD.
The growth of GBP was facilitated by revised UK GDP data. The indicator rose from 1.2% to 1.3% YoY. GBP is also supported by the possibility of a change of government. The opposition, led by the Labor Party, continues to work on creating a “government of national unity” if a vote of no confidence is expressed to the conservative government of Boris Johnson. In the event of the rise to power, Labor is likely to announce a new Brexit referendum.
JPY is weakening GBP, strengthening against EUR and moving horizontally against USD.
Japanese investors are focused on the publication of economic statistics, which turned out to be ambiguous. For August, industrial production fell by 1.2% instead of the expected 0.5%. The largest reduction was experienced in the production of steel and cast iron products, industrial equipment and automobiles. However, part of the losses was offset by increased production of electronics and chemicals. Japanese retail sales rose by 2.0% for August instead of 0.9% but the rise may be temporary, as Japanese consumers prefer to shop before raising the sales tax in October, which may put additional pressure on the economy.
AUD is strengthening against EUR, weakening against GBP and USD, and also moves horizontally against JPY.
Investors are waiting for tomorrow’s meeting of the Reserve Bank of Australia and its decision on the interest rate. It is predicted that the regulator will reduce it from 1.00% to 0.75%. Earlier, RBA head Philip Low noted that the growth of the Australian economy in the first half of this year was disappointing, as household consumption declined due to a long period of low income growth and lower prices. Thus, the new easing of monetary policy seems quite justified.
Today, oil prices were corrected downwards.
The instrument is under pressure of poor data on economic activity in China. For September, the index of business activity in the manufacturing sector grew from 49.5 to 49.8 points but continued to be in the stagnation zone for the fifth month. The index of business activity in the non-manufacturing sector decreased from 53.8 to 53.7 points. Also, Saudi prince Mohammed bin Salman warned of a sharp increase in oil prices in the event of exacerbation of tension in the Persian Gulf.
Robert Thomas has over 14 years experience in the investments on the institutional side of markets and has an “insider” view on the markets. In addition, he is an futures day trader that focuses on analyzing fundamentals, specifically earnings reports and technical levels. He has a Masters Degree in Business and Economics.