No. of Recommendations: 0
Wikipedia has a good article on ‘structured products’. 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 asset

Hey, cut me a slice of that. (NOT!)
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.