Schafer: Many in Minnesota are learning the hard way about investing in RUSNs – Minneapolis Star Tribune

There’s a kind of investment available in the market called a renewable, unsecured subordinated note. When the pros talk about them it sounds like “Russians,” from the RUSN acronym.

For most investors there’s just one thing about Russians really worth remembering, and that’s to stay away from them. The owners of many RUSNs issued by a suburban Twin Cities company called Aspirity Holdings probably have learned that the hard way.

The noteholders know now that they’ve got a problem, but not much more than that. Telephoning the chief financial officer of this company, an electrical power retailer, only reached a genuinely odd voice mail greeting last week.