Structured product

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Structured product

Structured products are investment vehicles based on a basket of underlying securities, such as derivatives, equities, debt issuance, commodities, indices, currencies, or any combination thereof. See: Debt instrument, Asset allocation decision, Structured finance

Structured Product

Any investment vehicle where the return is linked to the performance of an underlying index. For example, an exchange traded fund is a structured product that a company puts together using all the stocks that trade on a particular exchange. It compiles all the stocks and issues its own shares representing those stocks. These shares can be traded as if they were stocks. Many structured products are known by acronyms; for example, SPDRs are common structured product shares. See also: Rule 434.

Structured product.

Financial institutions create investment products, known generically as structured products, that trade on a stock exchange and link the return on an investor's principal to the performance of an underlying security, such as a stock or basket of stocks, or to a derivative, such as a stock index.

For example, the return on debt securities known as structured notes is determined by the performance of a stock index such as the Standard & Poor's 500 (S&P 500) rather than the market interest rate. The objective is to provide the potential for higher returns than are available through a conventional investment.

Each product has a distinctive name, often expressed as an acronym, and its terms and conditions vary somewhat from those offered by its competitors.

For example, in some cases the principal is protected and in others it isn't. But some features are characteristic of these complex investments -- their value always involves an underlying financial instrument and they require investors to commit a minimum investment amount for a specific term, such as three years.

References in periodicals archive ?
March 9, 2015 /PRNewswire/ -- Incapital, a leading underwriter and distributor of securities to financial professionals, today announced the expansion of its platform for the distribution of structured investment products.
An investor buying a structured investment that offers a defined return of, say, 60% after six years if the FTSE is above where it is now, gives the investor a good potential margin on inflation.
Fundamentally, the Structured Commodity Fund proposes to utilize controlled, well-directed, regimented and structured investment procedures that accentuate expansive exposure among commodity sectors.
HSBC Holdings (LSE: HSBA) has announced that it has launched the four-Year MYR Equity Linked (Hang Seng Bank Ltd) Structured Investment.
Structured investment products provide other opportunities for Latin investors.
The firm commissioned third-party studies on structured investment perceptions in both 2013 and 2014, culminating in the proprietary 2014 Exceed Structured Investments Report .
According to Bloomberg, Moody's Investor Service may cut its rating on structured investment vehicles created by HSH Nordbank AG, Bank of Montreal (BMO-PM.
HGK provides equity, fixed income, balanced and international, individually structured investment portfolios.
Texas Energy Holdings and its wholly owned subsidiary, Texas Energy Holdings International LLC, manage structured investment vehicles for national and international institutional and individual clients.
Incapital's Structured Investment Group is comprised of traders with experience in the U.
Citigroup, Inc (NYSE: C) is believed to be planning to sell structured investment products to retail investors.
His extensive operational experience at venture backed companies and structured investment experience will be an invaluable asset to the team as we continue to grow our firm.

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