CDOs, CMOs And Costly Compromises


Brokers, of course, make money from selling investment products. Many brokers understand the products they sell, performing the due diligence necessary to make informed recommendations that are suitable to their clients. In other cases, though, brokers are willing to compromise their clients’ best interests in order to profit personally. This is especially true of cases involving exotic investments like collateralized debt obligations (CDOs) and collateralized mortgage obligations (CMOs).

Backed by debt — sometimes bad consumer debt — and offering the potential for high returns, CDOs and CMOs were sold en masse during the mortgage boom, sometimes to the extreme detriment of investors who did not clearly understand what they were investing in. With broker-dealers tempted by high fees, they often didn’t understand what they were recommending.

Did Your Broker Misrepresent A Complex Investment?

If you believe your broker misrepresented a debt-based investment or was otherwise negligent in keeping your best interests as a priority, securities attorney Timothy J. Dennin can help you understand your rights and your options for pursuing legal recourse. Mr. Dennin’s litigation, arbitration and mediation experience includes:

  • Synthetic derivatives and structured derivatives
  • CDOs offered through a firm that used a more stable treasury component to entice investors
  • Multitiered investments for which maturity dates were unclear or misrepresented
  • Multiclass CMOs and pass-through securities
  • Securities with problematic ratings

Timothy J. Dennin has been fighting for the rights of investors from around the United States and throughout the world since 1990, winning hundreds of millions of dollars in settlements and awards for his clients.

Contact A Knowledgeable CMO Misrepresentation Attorney

If you suffered loss as a result of poor investment advice involving CDOs and CMOs, contact New York CDO misrepresentation lawyer Timothy J. Dennin to get your questions answered. Call 866-437-9475. We have offices in Northport and Manhattan.