Category Archives: CDO

Losses on Lexington Capital Funding III CDO?

Have you or your loved ones suffered losses as a result of purchasing Lexington Capital Funding III Collateralized Debt Obligation  (CDO) ?

This complex product was sold by Merrill Lynch to institutions and customers with high net worth. Just over a year after offering these CDOs to the market,  virtually all of the CDOs Merrill had underwritten were in technical default.

On August 8, 2008, Fitch Ratings downgraded 4 classes of Lexington Capital Funding III notes, stating “Fitch’s rating actions reflect the significant collateral deterioration within the portfolio, specifically from subprime residential mortgage-backed securities…..” Fitch went on further to describe that the portfolio was  91% comprised of vintage US sub-prime residential mortgage backed securities from 2005, 2006 and 2007, and that since Fitch’s prior rating in November 2007, 92% of the portfolio had been downgraded. Fitch’s press release.

Given the fact the offering closed in January 2007, and was in default 18 months later, securities attorneys nationwide are concerned about the apparent lack of due diligence prior to the offering as well as the marketing methods employed.

Call to discuss you legal options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870