Structured products

Wiki editors are welcome to contribute. --LadyGeek 22:33, 24 November 2010 (EST)

Caveat: Structured products are strongly not recommended for use by most investors. They are targeted for use in specialized applications. You can lose your entire investment. Please ask in the forum for guidance.

Define - buffered securities


 * Too good gets even better, forum discussion

Structured Products

 * Structured Products, NASD Provides Guidance Concerning the Sale of Structured Products, from FINRA (Financial Industry Regulatory Authority)


 * Understanding Structured Products


 * Are Structured Retail Products Too Good To Be True?


 * Structured Finance, from Investopedia
 * Structured finance, from Wikipedia

Structured Notes
Investment banks advertise that structured notes allow you to diversify your investment products and security types in addition to providing asset diversification. I hope no one really believes this makes sense because it doesn't. There is such a thing as over-diversification and there is such a thing as pointless diversification. Structured notes are the latter.
 * Structured Notes: Buyer Beware!

Given the extreme complexity and diversity of structured notes, we'll limit the remaining focus to the most common type, the buffered return-enhanced note (BREN). Buffered means it offers some but not complete downside protection. Return-enhanced means it leverages market returns on the upside. The BREN is pitched as being ideal for investors forecasting a weak positive market performance but also worried about the market falling. It sounds perfect, almost too good to be true, which of course, it is.


 * Structured Note

Buffered Accelerated Market Participation Security