Structured Products We Handle
Reverse Convertibles
A high coupon that can pay you back in depreciated stock instead of cash — effectively a sold put option dressed up as a bond.
What it is
A reverse convertible pays a high coupon over a short term, but embeds a sold put option on an underlying stock. If the stock stays above a barrier, you get your principal back in cash. If it falls below the barrier, you are instead delivered shares of the now-depreciated stock — worth less than what you invested. In substance, you have sold downside insurance on a single stock and collected a premium dressed up as 'interest.'
How it's sold
Reverse convertibles are marketed on their eye-catching coupons and short maturities, often to investors looking for yield. The bond-like language — 'coupon,' 'maturity,' 'note' — invites investors to think of them as fixed income, when the risk profile is closer to writing put options on a volatile stock.
What goes wrong
When the underlying drops through the barrier, the investor ends up holding a basket of fallen stock rather than their cash, crystallizing a loss that often dwarfs the coupon they collected. Because each reverse convertible is tied to a single name, a single bad earnings report or sector shock can turn the product against the investor quickly.
What a claim might look like
Suitability is central: a product that behaves like a written put on one stock is rarely appropriate for an investor seeking income and safety. Claims also arise from misrepresenting the product as fixed income, failing to explain the physical-delivery / barrier mechanics, and over-concentration across multiple reverse convertibles.
Other Structured Products We Handle
Auto-Callable Notes
High coupons that look like income — until the note is called early and your upside is capped while your downside isn't.
Learn moreWorst-Of Notes
Your return depends on the worst performer of several assets — marketed as diversification, but it's the opposite. FINRA is reviewing these in 2026.
Learn morePrincipal-Protected Notes
'Protected' only at maturity, and only if the issuing bank stays solvent. The 2023 Credit Suisse wipeout showed what 'protected' can really mean.
Learn moreSteepeners
Interest tied to the spread between long- and short-term rates. When the yield curve flattened and inverted, these got crushed.
Learn moreMarket-Linked CDs
They look like FDIC-insured CDs, but only the principal is insured — the equity-linked returns are not. Sold to investors expecting CD-like safety.
Learn more
Talk to a structured products attorney — for free
Find out whether you have a claim in a free, confidential case evaluation. There is no obligation, and you pay no attorneys' fees unless we recover for you.*