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.
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