Glossary
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- Structured Products
Structured products are synthetic investment instruments specially created to meet the needs that cannot be met from the cash financial instruments available in the markets. Structured products can be used: as an alternative to a direct investment; as part of the asset allocation process to reduce risk exposure of a portfolio; or hopefully to participate in a current market trend. Generally, structured products include one or more embedded derivative components that, for instance, limit the potential gain on a position in return for somewhat reducing the downside market risk. Alternatively, they sometimes are structured to produce above-average returns as long as market rates do not move too much in either direction. (Additional information may be found on Wikipedia.)
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