Citigroup MAT Five and MAT Three

Did you invest in MAT funds? You may have grounds for a claim.

If you invested in MAT Five or MAT Three, marketed by Citigroup, you may have grounds for an arbitration claim through the Financial Industry Regulatory Authority (FINRA). If you invested in MAT Funds and experienced a significant drop in your account without warning, were not informed by your broker of the specific risks associated with municipal bond arbitrage strategies or feel that Citigroup and your broker were not looking out for your best interests, we can help.

Napoli Bern Ripka Shkolnik, LLP handles securities arbitration claims for those who have suffered financial losses due to negligence, carelessness or intentional wrongdoing on the part of their financial advisors, brokers or brokerage firms. We are nationally recognized and have recovered more than $3 billion in settlements and verdicts for our clients since 2000 alone.

Overview of 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 had collapsed 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?

The MAT Funds strategy was dependent on a relationship between two different trading instruments: the LIBOR rate (the short-term rate which credit is extended at) and the return rate on municipal bonds. The proprietary hedging strategy relied on the singular proposition that the long-term relationship between these two rates was consistent and any short-term instability would 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 of 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 unsatisfied customers.

Why come to Napoli Bern Ripka Shkolnik, LLP?

Our lawyers at Napoli Bern Ripka Shkolnik, LLP have represented an array of clients who have found themselves victimized by investment fraud. We know how to address the issues involved to seek a positive result that will help you put your finances back in working order. Securities arbitration is an important area of our practice; we consider it 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 setback 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 institution. At Napoli Bern Ripka Shkolnik, LLP, we understand your cause and are dedicated to standing up for your rights. To find out how we can assist you, contact our firm for a free consultation at 888.870.2757. We look forward to hearing from you.