On Sep 29, 12:40 pm, dapperdobbs <G...@h...com> wrote:

> I believe it depends on two things: accepted parameters for
> diversification; and the company your advisor works for. It seems to
> me you have a good argument, depending on the amounts of money
> involved, that your bond holdings were under-diversified. E.g. if you
> had 100k in bodns, it should have been 20k in each of five issues. If
> the amounts involved were not enough for adequate diversification, he
> should have put you into CD's or a savings account. If the firm your
> paid advisor works for is good, they may agree to settle in mediation
> proceedings.

Technically, the OP wants to know if there is recourse *because the
risk level was unsuitable*. For that question (perhaps the wrong
question) the answer is likely "no". Losses from investments that were
otherwise suitable to the client at the time pf purchase are not
recoverable. "Diversification suitablility" aside, if an adviser
performs due diligence on an investment and makes all the proper
disclosures (prospectus, etc) he is not likely to be found liable for
subsequent market losses.

For the record, I too think that the advisor failed to properly
diversify the bonds. As you said, if the dollar amount in question was
so low that transaction costs became prohibitive, then invididual
bonds should have been forgone for other fixed income investments. If
the OP has a claim it's through this avenue, not because his
investments lost money.

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