Wikipedia has a good article on ‘structured products’. http://en.wikipedia.org/wiki/Structured_product Here’s a snippet of the important part. Disadvantages of structured products may include: • credit risk - structured products are unsecured debt from investment banks• lack of liquidity - structured products rarely trade after issuance and anyone looking to sell a structured product before maturity should expect to sell it at a significant discount• no daily pricing - structured products are priced on a matrix, not net-asset-value. Matrix pricing is essentially a best-guess approach• highly complex - the complexity of the return calculations means few truly understand how the structured product will perform relative to simply owning the underlying assetHey, cut me a slice of that. (NOT!)
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