Category Structured Products

Protecting the Downside, while Participating in the Upside

Protecting the Downside, while Participating in the Upside   A couple of months ago in “Lifecycle investing” I, superficially touched, upon Zvi Bodie’s view that diversification is not the only way to reduce investment/market risk. In fact, according to him, it may not even be the best way. In a reference that I quote in that […]

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Structured Products III – Create Your Own Enhanced Index Product

Structured Products III – Create Your Own Enhanced Index Product In Structured Product II- Good or Bad? It Depends on Your “View” we discussed how to compare products with different performance characteristics, by using your “view” of the probability of future returns and we compared the expected outcome (value) of an enhanced index structured product […]

Structured Products II- Good or Bad? It Depends on Your “View”.

Structured Products II- Good or Bad? It Depends on Your “View”. An earlier blog provided an overview of Structured Products . As a specific structured product application consider an enhanced index product with six year maturity whose payback is 1.45x the reference price index return in local currency (without dividends),when it is positive, ; and […]

Structured products: BMO Life Stage Retirement Income Portfolios

Structured products: BMO Life Stage Retirement Income Portfolios Background In the January 24, 2011 Hot Off the Web blog I mentioned a new product from BMO, which I described as fitting into the category of products of expensive and opaque nature, the “BMO Life Stage Retirement Income Portfolios” . At the time, I also had […]

Structured products I

Structured Products I In my September 30, 2007 Hot Off the Web, I mentioned John Authers of the Financial Times in “Structured vehicles may be way forward” discussing how, in the wake of the relatively poor recent performance of hedge funds and private equity, the emphasis may be shifting away from hedging to guarantees in […]