Morgan Stanley Harvest Collateral Yield Enhancement Strategy (CYES) Securities Investigation

The White Law Group is investigating potential securities fraud claims involving Harvest Collateral Yield Enhancement Strategy, (Morgan Stanley Harvest CYES) an options-based investment strategy,  sold by Morgan Stanley and other brokerage firms.

If you are concerned about  investment losses  in Harvest Collateral Yield Enhancement Strategy (CYES), the securities attorneys at The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution Claim against the brokerage firm that sold you the investment.

In 2019, investors in the UBS Yield Enhancement Strategy reportedly suffered more than $60 million dollars  in losses, with numerous lawsuits filed in hopes of recovery.

These options-based investment strategies apparently targeted high income investors and were touted as a market-neutral strategy and a “safe” investment. Unfortunately for investors,  they are big losers in highly volatile markets.

The CYES strategy, similar to the YES (Yield Enhancement Strategy), involves margining investors’ conservative stock or bond portfolios to invest in “Iron Condor” options trading structures managed by a third-party investment advisory firm, Harvest Volatility Management. Iron Condor is a popular trading strategy that involves a pair of options “spreads.”

The strategy includes a broker selling call or put options to enhance returns in relatively stable or flat markets. Options or derivatives are only suitable for the most sophisticated investors. They are extremely complex and risky to begin with, but now the market turbulence due to the global pandemic, Covid-19, could mean catastrophic losses for investors.

Recovery of Investment Losses in Morgan Stanley Harvest CYES

Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.

It is possible that some financial advisors may have recommended this type of investment because of the high commissions associated with their sale and creation.

If you have suffered losses investing in CYES with Morgan Stanley or another brokerage firm, please contact the securities attorneys at The White Law Group.  For a free consultation, please call the offices at 888-637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.