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 ?
BANKING AND CREDIT NEWS-March 9, 2018-RiverRock launches independent structured products multi-dealer platform
M2 EQUITYBITES-March 9, 2018-RiverRock launches independent structured products multi-dealer platform
Singapore Exchange (SGX) has been named Asia Exchange of the Year at the Structured Products Awards 2017.
Global Banking News-June 30, 2017--Imperial Capital strengthens Structured Products Group
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.
Structured products (SPs) and structured notes (SNs) are heavily marketed to often-unsuspecting retail investors.
The International Organization of Securities Commissions (IOSCO) today published the final report on Regulation of Retail Structured Products, which provides a toolkit outlining regulatory options that securities regulators may find useful to regulate retail structured products.
Structured products have become a huge financial market.
Incapital, a leading underwriter and distributor of fixed income and other financial products, polled nearly 100 financial professionals at its 2012 Structured Investments Conference in October to assess the overall sentiment of advisors about structured products and their perceived key attributes and challenges.
IBQ has launched structured products that will be linked to different asset classes and give investors the possibility of earning higher returns and capital protection at maturity.
20), which will meet wealth-management demand of local people via five major measures, including allowance for linkage of offshore structured products to Taiwanese stocks and allowance for linkage of domestic and offshore structured products to interest rates, exchange rates, and stock prices of mainland China.
This is exactly what Structured Products aim to achieve.

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