Risky, expensive, over-complicated: just some of the accusations leveled at structured products. But are these fair conclusions?
In a week that has seen the launch of a structured products provider, some could be forgiven for thinking the industry is set for a resurgence. Yet many advisers remain unconvinced of the products’ benefits and scared of the risks they pose. Here, we attempt to debunk some of the biggest myths surrounding structured products… “The collapse of Lehman Brothers showed how risky these products can be” The collapse of Lehman Brothers brought to the fore the issue of counterparty risk in structured products and frightened a great many number of investors. After all, if Lehmans could go b...
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