Citigroup MAT V and MAT III
Anyone who invested in MAT Five LLC ("MAT Five"), marketed by Citigroup, may be entitled to file a claim for arbitration through FINRA. For those affected, did the value of your account drop precipitously without warning? Did your financial advisor clearly explain the risks involved with a municipal bond arbitrage strategy? Was anyone at Citigroup looking out for your interests? If the answer is no the attorneys at Napoli Bern Ripka, LLP may be able to help you regain some peace of mind.
MAT Funds
MAT Three and Five were advertised as generating attractive levels of cash flow paying quarterly and offering portfolio diversification. Citigroup Fixed Income Alternatives ("CFIA"), which ran the fund, was marketed as an experienced leader that could allocate capital opportunistically, finance favorably, and execute timely. In the promotion of the funds Citigroup misrepresented the opportunities provided by the fund by not properly advising investors of the risks involved in the hedging strategy employed. When that hedging strategy consequently failed, Citigroup waited until the fund was brought to collapse before taking action. Citigroup failed to inform clients at a time when steps could have been taken to protect assets.
What Happened to the MAT Funds?
Essentially, the MAT Funds strategy was dependent upon a relationship between two different trading instruments. These two rates are the LIBOR rate, the short-term rate which credit is extended at, and the return rate on municipal bonds. The proprietary hedging strategy relied upon a single proposition: The long-term relationship between these two rates are consistent and any short-term instability will cure itself. In the summer of 2007 this relationship began to unravel due to credit deterioration and government action to free up access to credit. By October, 2007 the relationship between the two rates exhibited strains that hadn't been seen in recent decades. Citigroup, confident in their theory that the rate would return to historical norms, pushed to sell the situation as an opportunity without considering the risks. By the time it became clear that the fund strategy had completely failed Citigroup attempted to save face by bailing out the funds and offering limited refunds and incentives to dissatisfied customers.
Why Come to Napoli Bern Ripka, LLP?
Our lawyers at Napoli Bern Ripka, LLP, have represented an array of clients who have found themselves victimized by investment fraud. We know how to address the issues involved and get the results you need to put your finances back in working order. Securities and arbitration is a specialty of ours. We employ seasoned attorneys with a track record of achieving client goals. We understand that you have probably suffered a significant financial set back as a consequence of following the ill considered advice of your financial advisor or from an institution's misrepresentations inducing you to place money in the wrong hands. The common theme among our clients is that their financial security and life goals have been placed in peril due to the trust placed in an advisor or an institution. At Napoli Bern Ripka, LLP, we understand your cause and are dedicated to standing up for your rights.
