An Examination of These Risky High Yield Bonds, the GWG L Bonds

GWG l bonds debt obligations For the investors Haselkorn & Thibaut represent, I have resulted in losses. The Dallas-based alternative asset issuer GWG Holdings, Inc. (NASDAQ: GWGH), issued these high-yield bonds.

Investors whose broker-dealers provided them with these financial products are represented by our experienced GWG Holdings L Bonds attorneys. Call 1-888-614-9356 or submit an email to the Haselkorn & Thibaut Law Firm right now.

Unrated, speculative, and illiquid L Bonds are dangerous investments. The life insurance policies were purchased on the secondary market via private placements. Then, the value of the policy’s surrender would be increased for the policyholders. The GWG Holdings L Bonds attempted to provide a higher yield to the bondholder in exchange for assuming the risk that the benefits or premiums might not be paid.

The majority of pensioners, the elderly, and conservative investors, however, were never suited for L Bonds. Furthermore, creating an L Bond is not particularly special. The fact that GWG could call them “life bonds” suggests that it was a marketing strategy. The risks and possible benefits for investors can, however, be affected by specific characteristics of L Bonds.

The GWG Holdings L Bonds look like this:

GWG Holdings’ junior debt was revealed in a recent prospectus, which also revealed that GWG owes other lenders a sizeable sum of debt that is senior to the L Bonds.

Auto-renewable: Unless the owner of an L bond gives notice before the bond matures, the bond is automatically renewed and replaced with a new one that has the same terms and interest rate as the original.

GWG Holding L bonds were offered for sale by managing broker-dealer Emerson Equity, who collaborated with additional brokerage houses to do so. Emerson and the other company would receive up to 8% in commissions from these investors.

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