Category Archives: High Yield Bonds

Losses on High Yield Debt of Halcon Resources May Be Recoverable

January 8, 2015

The  high-yield debt issue of Halcon Resources Corporation with a 9.75% coupon, set to mature 7/15/2020 (Cusip 40537QAB6) closed at $73.38 yesterday.

High yield debt in energy companies has been tracking the decline in oil prices which have fallen 50% in just a few short months.

High yield bonds are issued by companies that don’t qualify for the higher ‘investment grade’ rating’ by one of the rating agencies like Moody’s , Standard and Poor’s or Fitch.  Issuers of these bonds must pay a higher rate of interest to compensate the investors for buying their bonds and accepting the higher risk.

See this for a chart on bond rating definitions.

Stock brokers and brokerage firms are required to make suitable recommendations to investors taking into account their risk tolerance, net worth, level of investment sophistication and investment objectives.

Generally retired persons on fixed income should not have a large percentage of their liquid assets invested in risky investments like high yield bonds. If you have losses on high yield bonds and think that you were misled or given bad advice, contact us to discuss your legal options.

The common stock of Halcon Resources  (HK)  has not fared well during 2014 either, falling from a high of over $7 in July  to $1.54.

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

Energy XXI (Bermuda) Limited High Yield Bonds Losses May Be Recoverable

January 8, 2015

According to the financial press, a high-yield debt issue of Energy XXI (Bermuda) Limited (EXXI) with a 9.25% coupon, set to mature 12/15/2017 dropped 2% during trading yesterday to $62.50.

High yield debt in energy companies has been tracking the decline in oil prices which have fallen 50% in just a few short months.

High yield bonds are issued by companies that don’t qualify for the higher ‘investment grade’ rating’ by one of the rating agencies like Moody’s , Standard and Poor’s or Fitch.  Issuers of these bonds must pay a higher rate of interest to compensate the investors for buying their bonds and accepting the higher risk.

See this for a chart on bond rating definitions.

Stock brokers and brokerage firms are required to make suitable recommendations to investors taking into account their risk tolerance, net worth, level of investment sophistication and investment objectives.

Generally retired persons on fixed income should not have a large percentage of their liquid assets invested in risky investments like high yield bonds. If you have losses on high yield bonds and think that you were misled or given bad advice, contact us to discuss your legal options.

The common stock of Energy XXI Ltd. has not fared well during 2014, falling from a high of about $25 to less than $3.

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

How to Recover Losses on High Yield Energy Bonds

January 7, 2015

According Standard & Poor’s, bonds in small energy companies have grown to 15% of the U.S. high-yield bond market, drawing retail investors who were attracted by the yield during a time when yield was difficult to find.

With oil down over 50% in recent months, these investments are now at 50 cents, or less, on the dollar and investors who may have been unaware of the risk they were taking, are now  a bit shocked at the loss of principal they have suffered.

Consider the closing prices today on three small energy companies:

  • Sandridge Energy Inc. 8.5% Conv. Pfd (SD)                                 $39
  • Midstates Petroleum 10.75% 1Oct2020  (MPO)                    $50
  • Resolute Energy 8.5% 05/01/2020 (REN)                                     $51

High yield bonds are issued by companies that don’t qualify for the higher ‘investment grade’ rating’ by one of the rating agencies like Moody’s , Standard and Poor’s or Fitch.  Issuers of these bonds must pay a higher rate of interest to compensate the investors for buying their bonds and accepting the higher risk.

See this for a chart on bond rating definitions.

Stock brokers and brokerage firms are required to make suitable recommendations to investors taking into account their risk tolerance, net worth, level of investment sophistication and investment objectives.

Generally retired persons on fixed income should not have a large percentage of their liquid assets invested in risky investments like high yield bonds. If you have losses on high yield bonds and think that you were misled or given bad advice, contact us to discuss your 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