"Profit from your knowledge!"
The Bull Bear Trader discusses market events and news with an interest in understanding risk and return in both bull and bear markets. Discussion topics include trading and hedging strategies, derivatives, risk management, hedge funds, quantitative finance, the energy and commodity markets, and private equity, as well as an occasional investment opinion.
Friday, April 11, 2008
Buy This Structured Product .......... I Don't Want It
It looks like structured products are not for everyone, even those that advise investors on structured products. As reported by Investment News, a recent survey at the Structured Products Association convention in New York (who knew they had a convention?) showed that 40% of over 200 industry representatives at the convention do not invest in derivatives-based products. Maybe they know something we don't. Or possibly, just the opposite. Like others, maybe they have no idea how some derivative-based structured operate, or what the risk are. Of course, they do know one thing - they generate huge fees.
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