Specialized in Banking and Financial Law
Convertible Bonds Santander Securities, Popular Bonds and Banc Sabadell Convertibles
Convertible Bonds is a product that Banks issue to capitalize.
Convertible Bonds Santander Securities, Popular Bonds and Banc Sabadell Convertibles
Normally they offer a fixed and high interest at the beginning of the issue as a strategy to attract customers, and thereafter, the return is referenced to the Euribor.
Its main characteristic is that at the maturity date the bonds are compulsorily converted into Bank shares.
The Supreme Court Judgment of June 17, 2016 qualifies this product as complex and risky.
The Bank decides and sets the conversion price unilaterally.
The problem with this product is that the client hires without knowing what is the reference price that the bank uses for the conversion (or why the Bank hides it; or why it is not specified in the documentation or why what the documentation collects is incomprehensible for a consumer customer).
Consequently, the main risk of the product, and one that the Bank does not usually report, is that if at the time of the exchange, the fixed share price is above the current market price, the client loses money.
To attract the attention of customers, the entities have sold this product using very attractive names such as Valores Santander, Bonos Popular and Convertibles Banc Sabadell, denominations that hide the true risky nature of the product.
If you are affected by the purchase of this product you can contact the office, we will study your case and advise you. Going to court is being the best option since purchases are being canceled because it is shown that the bank did not provide adequate information, and customers are recovering the entire amount invested.
Contact an expert Lawyer in Convertible Bonds and Santander Securities.
At BBS Abogados we can help you recover your investment, consult one of our expert lawyers.
