Martin Lee @ Sg
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Pinnacle Notes Default

There are news that Pinnacle Notes series 9 and 10 had a forced liquidation event. This is due to defaults in the underlying securities some of which are Lehman Brothers, Freddie Mac, Fannie Mae and Kaupthing banki. Investors will likely be getting back nothing. 

Series 1, 2, 6 and 7 are also in danger as they will experience forced liquidation if any more defaults take place.

Other credit-linked series that might be affected could be series 3 and 5.

Series 8, 15 and 16 are safe for now as they are not linked to credit default events.

Pinnacle investors can call the Morgan Stanley hotline from 9am-12pm at 68346510/68346512  to find out more information.

If you know anything, please post the information here.

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181 comments
EJ says 8 years ago

The adviser’s firm claimed no misled of course and refer me to the FI, who also claimed nothing to do with them. Like merry-go-round, MAS also refused to respond and refer us to Fidrec. Fidrec, act just like a co-ordinator, leave it to us whom we want to claim against, have to pay 2 fees if go against both parties. We are like a fool to follow this stupid 3-steps imposed by MAS ! Give up on all these !

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sureesh says 8 years ago

Hi EJ

Yes I think the class suite would be a long drawn out affair. It would take a few years to settle. Hae you got any compensation from the FI who sold you PN 3

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EJ says 8 years ago

Thanks ! Doubt the residual value will be high, as I only got back $138 for my PN Series 3 sometime in Feb this yr, after it gone busted. Has joined the class action long ago but no result

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sureesh says 8 years ago

Hi EJ

Perhaps there will be some residual value. Morever you could submit a misselling complaint against the FI where you bought the product from. Usually they would offer you some settlement and if you are dissatisfied with the offer, you could go to FIDREC. Have you joined the class action suite.

The redemption is not official yet, but it is probable because the remaining threshold value for PN is very low now and 1 more default would trigger a redemption.

Good luck to you

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EJ says 8 years ago

Hi Sureesh, thanks for the update. A surprise Christmas gift to many pple then ! My $70K will go down to the drain soon …..

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sureesh says 8 years ago

For those who hold series 2, be prepared Ambac corporation filed for bankrupcy recently. Ambac is one of the underlying companies in series 2. This could trigger a redemption event.

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lee says 8 years ago

I also purchase PN 7. Can I join in?

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Concerned says 9 years ago

Thanks for the info, lioninvestor..

Hey, anybody joining the law suit by Kirby McInerney ? I had email my details to them, hope they will reply me with more details…

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sureesh says 9 years ago

For series 6 & 7 holders, a redemption event is imminent.
Aiful’s default has reduced the threshold to a low value.

And now that Ambac financial is also going to default it would probably bring the value down to zero which would trigger a redemption, so be prepared to lose all your money.

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lioninvestor says 9 years ago

A US law firm, Kirby McInerney, has spoken about possible legal action that can be taken in US Courts in connection with the Pinnacle Notes.

Investors will only need to pay Kirby McInerney if they are successful in their law suit and the fee will be based on a percentage of the money recovered from the financial institution that is being sued.

As I understand, the law suit is not against the distributor of the Pinnacle Notes so those who have already settled on a partial compensation with their distributor would still be able to join.

More information here:

http://www.martinlee.sg/pinnacle-notes-legal-action/

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Concerned says 9 years ago

Hi, any updates on the pinnacle action group ? Did anybody actually get back any compensation after going thru Fidrec ? Or any ways … seems so quiet on this nowadays… this is really disheartening..

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Investor says 9 years ago

What happens to the other Series like 15?
Thanks.

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    lioninvestor says 9 years ago

    Hi investor,

    15 is equity-linked note and is fine.

    Your main risk is the default risk of Morgan Stanley.

    Reply
sureesh says 9 years ago

Series 6 & 7 should mature in 3 years time. I wonder if it can hold on to until then. So far Aiful’s default has not resulted in a credit event yet. I don’t know why.

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sad says 9 years ago

I’ve just received interest for series 7. Wonder if this series can hold up with the latest credit events.

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sureesh says 9 years ago

Interest for series 6 should be paid soon I think by this Friday

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