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The Need for Structured Products

World financial markets are becoming more sophisticated. Globally expanding exchanges and an increasingly diverse range of products make it difficult for even the most active market perticiapnts to stay abreast with market devleopments. The need for reliable, flexible and innovative investment instruments has never been greater. Structured products have the potential to meet the tough…
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Structured Products and Alternative Investments

Internationally, private investors have been using structured products to gain access to alternative investments for a number of years now. Increasing interest has arisen after the extended period of market volatility and lack of credit facilities available since mid-2008. Structured products can be a convenient way for private investors to access alternative investments for the…
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Inherent Protection

The single greatest advantage of structured investment products over funds or direct investments is the capability to protect investor capital. Capital protection can be tailored to suit different requirements. There are three main types available: 1. Full, hard capital protection. 2. Partial, hard capital protection. 3. Full, soft (or conditional) capital protection. Full, hard capital…
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Gearing

There are two types of gearing: internal and external. Internal gearing is employed most commonly in investment funds through the use of options, futures or other derivatives. These financial products allow investors to take part in the return of an underlying security without actually owning it. External gearing normally involves a retail investor borrowing money…
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Trends in Structured Products

Structured Products face a number of challenges in the current environment of tighter credit conditions and elevated volatility. As volatility has increased so too has the cost of derivatives. It is now more expensive to buy an option on an underlying asset than it was before the credit crunch. Another challenge in constructing structured products…
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