Investments in structured products: concept, calculations, bank structured products

Investments in structured products: concept, calculations, bank structured products

We offer explore the features of this type of investment, as the structured products. This type of investment has a second name - structured financial products. They appeared in America in the mid 20th century. A large number of brokers now use structured products. Let us examine them in detail.

Structured products involve the division of an investment portfolio into two basic parts: the risky and risk-free. This portfolio is constructed in such a way that even if the worst case scenario risk-free part of the portfolio offset losses incurred by risky part. Next, we consider these points:

What are structured products?
How is the calculation yields a structural product?
Classification of structured products on the level of risk
Banking structured products
Advantages and disadvantages of structured products
What is a structured financial products?

In plain language, the concept of structured product can be explained as follows: an ordinary investment portfolio, consisting of two parts, one of which (protection) is always greater than the other (risk). The investment strategy determines the level of diversification in your particular case. Currently there are many programs that allow you to restore the capital, even with large losses.

However, no software solution does not relieve you of the jumps in exchange rates and inflation. For example, a structured product can be called an asset which 10% is made up of equities, options, indices, and 90% of deposit or bonds with fixed yield of 10% per annum. As we all know, these combinations can create a huge amount.

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