Recovering UBS YES Losses

UBS marketed its “Yield Enhancement Strategy” (YES) as a safe way for in investors to increase return on their money at a time when interest rates were low. Unfortunately, though marketed as low-risk, their strategy was quite risky and ended up causing some investors to lose money.

What is the UBS Yield Enhancement Strategy?

The UBS Yield Enhancement Strategy was a complex options investing scheme designed to earn clients more yield by investing in options for the S&P 500 index (SPX) in a strategy called an “iron condor”.

The complicated iron condor strategy (so called because the shape of the profit and loss graph resembles a large bird such as a condor) involves investing in a series of put and call spreads with the same expiration date and different strike prices. The strategy is supposed to hedge risk, but it is not effective if the market is volatile.

Of course, the market did become volatile and some investors lost considerable money. What was supposed to increase wealth ended up destroying it.

Recovering Bad Investment Losses

Investing in options involves significant risk. But brokers at UBS may not have adequately explained the risks of their Yield Enhancement Strategy when selling. Brokers at UBS have an obligation to only recommend investments that are suitable to their customer’s objectives, age, risk tolerance, and investment experience.

If you lost money in the UBS Yield Enhancement Strategy, you may be able to recover money by making a FINRA arbitration claim. You can file the claim on your own, but you will have a better chance of success by working with an experienced attorney.

Silver Law Group is investigating cases of investors who have substantial losses from UBS Yield Enhancement Strategy. Some clients of UBS have already started this process.

Silver Law Group is a nationally-recognized securities law firm headquartered in South Florida representing investors worldwide with their claims for losses due to securities and investment fraud. The firm has successfully recovered multi-million dollar awards for its clients through securities arbitration and the courts. To contact Scott L. Silver to discuss your legal matter, call toll-free (800) 975-4345 or e-mail him at SSilver@silverlaw.com.