Institutional Investors

Institutional investors are organizations which pool large sums of money and invest those sums in securities, real property and other investment assets. They can also include operating companies which decide to invest their profits to some degree in these types of assets.Typical investors include banks, insurance companies, retirement or pension funds, hedge funds, investment advisors and mutual funds. Their role in the economy is to act as highly specialized investors on behalf of others. For instance, an ordinary person will have a pension from his employer. The employer gives that person's pension contributions to a fund.
Posts about Institutional Investors
  • Whistleblower Suit Against Quicken Loans Proceeds

    … explaining the appraisal process and particularly, why Quicken has an incentive to get a high appraisal!!! In typical Dan Gilbert fashion, Quicken didn’t buckle under and try to quietly settle the matter. Quicken came out swinging. Immediately after the suit was filed, Quicken CEO Bill Emerson was quoted in the Detroit News saying, “No threat, including…

    Due Diligence- 19 readers -
  • New York Securities Professional Charged With Fraud

    … New York Securities Professional Charged With Fraud Posted on Monday, July 18, 2016 at 8:48 AM From the Desk of Jim Eccleston at Eccleston Law LLC: The Securities and Exchange Commission recently charged Andrew W.W. Caspersen in connection with his role in defrauding two institutional investors into investing in a shell company by using…

    Eccleston Law Offices- 18 readers -
  • Nontraded REITs 2.0 (“Nontraded Preferred Shares”) – A Bad Idea

    … Earlier today the widely respected securities industry trade publication, InvestmentNews, published a story titled “REIT with a twist — and a high commission — is new darling of independent brokers-dealers.” If that title sounds bad for customers, it is. The REIT with a twist is a nontraded REIT packaged as preferred stock. Nontraded REITs have…

    Due Diligence- 13 readers -
  • SandRidge Energy Investigation

    …. The report also stated that SandRidge was carrying a debt burden close to $4 billion and that it had reached out to creditors informing them that they should organize to prepare for likely negotiations. The majority of the debt is held by a myriad of mutual funds, hedge funds, and other institutional investors. SandRidge Energy stock value has flat…

    Eccleston Law Offices- 22 readers -
  • Bad News For Shale Bond Holders – $100 Oil in 2040

    …? Institutional investors and banks should have known better. The energy sector has always been volatile and experts had long warned about these investments. We are most concerned, however, with individual investors who were duped into buying these bonds by stockbrokers seeking to earn a quick commission. Many investors have long yearned for stable…

    Due Diligence- 31 readers -
  • Mortgage Company Quota System Leads to $70 mm Settlement

    …. Because there can be thousands of mortgages in each RMBS pool, investors want some assurance of the quality of the underlying mortgages. That assurance is satisfied when the mortgages are insured and backed by the government. The FHA (Federal Housing Administration), Fannie Mae and Freddie Mac are the three largest public guarantors of mortgages…

    Due Diligence- 37 readers -
  • CNN Warns of Oil & Gas, Shale Bond Defaults

    … bonds might be great for institutional investors looking for high yields and willing to speculate. They have no business in the portfolios of retirees and others who need their money to fund their retirement. Everyone in the industry knew these were speculative plays yet some unscrupulous brokers continue to peddle them on an unsuspecting public…

    Due Diligence- 27 readers -
  • Puerto Rico Bonds – JUNK!

    …. As a territory, it does not have the legal right to do so under the U.S. Bankruptcy code. Some big institutional investors such as hedge funds that invested heavily in the now nearly worthless bonds are instead demanding that the government gut programs and engage in mass layoffs of teachers and public employees. U.S. House Democrats generally support…

    Due Diligence- 39 readers -
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  • UBS Tagged (Again) Puerto Rico Bond Scandal

    … institutional investors may be more willing to accept more risk and lower liquidity, these bond offerings should not have been sold to retirees or folks who needed ready access to their money. The push to unload these bonds was apparently so bad at UBS that some brokers were receiving internal over concentration memos. These memos are internal…

    Due Diligence- 20 readers -
  • More Bad News for Holders of Shale Bonds

    … of many of these exploration and production companies was almost doomed to default. While shale bonds might be an acceptable risk for some institutional investors, we have found that many individual investors were sold these junk bonds by brokers who promised high returns. One report says that just in the last few years over $11 billion of junk shale…

    Due Diligence- 36 readers -
  • SEC Slams Stockbrokers Over Risky Investments

    … released its long awaited analysis of sales of these so-called structured products. The results are scary. A structured product is usually a complex and often risky security. They are typically associated with derivatives. Once the exclusive domain of institutional investors, billions of dollars of structured products can now be found in the portfolios…

    Due Diligence- 29 readers -
  • Shale Bonds, Oil & Gas Fraud and the $4 Trillion Hole

    … a broker fully understands his client, he or she must only make recommendations that are suitable for the customer. Suitability rules factor in risk tolerance, age, investor sophistication and need to access one’s capital in the short term. For example, while junk quality shale bonds may be acceptable for institutional investors they are rarely…

    Due Diligence- 80 readers -
  • Couple Win $16.6 Million Investment Fraud Award

    … were better suited for sophisticated institutional investors. If the Eringers couldn’t be sold the leveraged derivatives, what did the stockbroker do? He had them create a corporate entity so that they could invest. In our opinion, this was a giant red flag. Derivatives are often quite complex, risky and often illiquid. We believe that often these…

    Due Diligence- 44 readers -
  • Bank of America, Others Accused of Market Manipulation

    … auctions, an action that hurts both investors and borrowers. Particularly affected are institutional investors such as pension funds who often purchase large amounts of Treasury securities. The complaint claims the banks used chat rooms and instant messaging to illegally coordinate trading strategies. This allowed the banks to inflate the price…

    Due Diligence- 46 readers -
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