Wednesday 5 November 2008

Equity destructors ...


Another financial structured product(Equity Accumulators) rears its ugly side for Asian investors.
Lesson to take away - nothing is for free...

Posted by Eaststopper at 21:54

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4 comments:

Unknown said...

Now that you put it that way, it does seem like a huge transfer of risk to the man on the street. Interestingly, it is often not presented to the potential customer as such.... the focus is always on the first scenario coupled with how well the underlying basket of financial instrument has been doing in the past years.

6 November 2008 at 07:11
Eaststopper said...

I expect to see a huge risk aversion to these structured products and for a return to the plain 'o' vanilla products.
These structured exotic stuff underwritten in good times basically sold the downside to the investors and limited their upside. Don't expect to see the reverse happening in bad times.

6 November 2008 at 14:09
Unknown said...

Even if there are any further structured products, I would be surprised if there are any takers back in S'pore after the Lehman Minibonds debacle.

Say, would you be in town during any of the weekdays? Fancy meeting up for a bite?

7 November 2008 at 04:31
Eaststopper said...

Dear CK,
Definitely for the meetup. Will communicate via a less public channel.

Speak soon,
Eaststopper

7 November 2008 at 07:14

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