USB YES or Yield Investment Strategy had over 1,200 investors and they had committed capital to this strategy either in the form of securities or cash. It was primarily marketed to the investors as fixed income and the bonds offered collateral to the trades. The investors looking for conservative investments to protect their principal participated in this YES program. The strategy was a low-risk program that was employed for generating additional income. This program used the options strategy, called the Iron Condon that created a better return or a better cash flow appearance when there were periods of low volatility.
UBS and the brokers and financial advisors of UBS generated heavy commissions and fees. When volatility index reached the highest level, UBS Yield Enhancement Strategy losses began to pile up for the investors of the YES program. Financial advisors who were working or had worked in the big brokerage firms said that unsuitable YES investments resulted in huge losses to the clients. Several financial advisors failed to disclose its related risks with high-risk investments. The YES program investments should be purchased only by those investors who have an aggressive risk tolerance because of its nature being high-risk.
Recovering financial losses
Attorneys of various law firms are investigating YES strategy of USB for investor recoveries. The attorneys hear from investors who have experienced losses because of this complicated program. It seems that this YES program was sold to the US investors as a low-risk and a conservative investment strategy, which will offer them an enhanced income or yield in their portfolio. This strategy used the option strategy called an Iron Condor that is risky and it depends on constant stability of the markets.
YES strategy lawsuits
As per the law firms that are investigating USB regarding their sales practices in connection with YES or Yield Enhancement Strategies and a complicated version called Iron Condor, this program was pitched by the financial advisors of USB to their customers as an efficient and a safe mechanism for enhancing yield from the conservative portfolio. However, investors suffered huge losses in this so-called safe strategy. This strategy contained a lot of risks. Though the strategy was allegedly pitched by USB as a low-risk or a neutral strategy, yet it contained a lot of risks. As a result, when the market faced huge volatility, the investors of this strategy suffered UBS Yield Enhancement Strategy Losses.