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National investment loss lawyers KlaymanToskes reports that Sound Point Capital Management, a key player in the market for leveraged loans bundled into securities, is currently negotiating to resolve a government investigation into its internal policies for handling information. The U.S. Securities and Exchange Commission (“SEC”) is investigating the adequacy of Sound Point’s policies and procedures for managing and controlling information while trading in collateralized loan obligations (CLOs).
According to a regulatory filing by an affiliate of Sound Point Capital, the firm has been in discussions with the SEC to potentially resolve the investigation, which commenced in April 2023. The investigation scrutinizes whether Sound Point’s internal controls are sufficient to prevent misuse of sensitive information during trades. Despite managing over $45 billion in assets, Sound Point’s handling of information and compliance with regulatory standards has come under significant scrutiny.
Founded in 2008 by Stephen Ketchum, Sound Point Capital operates a CLO platform consisting of 57 U.S. CLOs and 17 European ones. The global CLO market, which includes approximately $1 trillion in the U.S., has thrived despite economic challenges such as persistent inflation and fears of a slowdown. However, Sound Point’s alleged lapses in information management pose a risk to its clients and the broader market.
If you have experienced losses or have concerns regarding your investments with Sound Point Capital Management, contact KlaymanToskes at (888) 997-9956 or by email at investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com