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 ?
This includes any related structured products, options and warrants.
Inline Warrants will complement HKEXs existing structured products suite that already includes Derivative Warrants and Callable Bull/Bear Contracts (CBBCs), which are both more focused on directional trading.
This was mainly driven by the fee income from the structured products and a reduction of 26 percent in returns to unrestricted investment account holders (the cost of funding) due to the better management of its loan to deposit ratio.
Piper Jaffray Companies (NYSE: PJC), an investment bank and asset management firm, has said that it has appointed Kyle Javes as co-head of the high yield and structured products desk.
Bank Muscat's PEAM division takes pride in its ability to offer its clients a wide array of structured products, hedge funds and private equity funds.
by Times News service Bank Muscat PEAM takes pride in its ability to offer its clients a wide array of structured products, hedge funds and private equity funds.
Structured products have gone through many guises over the years and there have been a few hiccups on the way - the precipice bond scandal of 2000, the Keydata collapse, and exposure to collapsing banks during the 2008 financial crisis.
NEW YORK: Citi added two senior officers to the firm's Structured Products business.
At Deutsche Bank Wealth Management, Coley Jellinghaus joined as managing director and head of structured products and capital markets solutions, and Kjeld Engberg will join as head of structuring, both within the firm's U.S.
Prism Valuation provides independent valuation and risk analysis of derivatives and structured products.
Lowes Financial Management are recognised as experts in the use of structured products which are used alongside managed portfolios.
Q: My advisor is buying structured products for me, and I am very happy.

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