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Where next for interest hedging by SMEs?

In June 2012, the FSA published the findings of their review into the sale of interest rate hedging products to small and medium sized businesses (‘SMEs’). The FSA “found that when properly sold, in the right circumstances to the right customers” hedging products “can protect customers against the risk of interest rate changes.” However, they […]

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Advisers need more cash solutions!

A survey from Investec, reported in Financial News, has revealed that advisers need more cash products. Over the last five years, cash deposits and money market funds have benefitted from periods of market volatility. This is understandable, as these assets offer protection of capital (subject to credit worthiness and/or deposit protection schemes) and some income, […]

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Former Skandia head starts SP consulting firm

Story from StucturedRetailProducts.com 2012 © Former Skandia head starts SP consulting firm 15 Jun 2012 Philip Bastiman (pictured), the former head of structured products at Skandia Investment Group, has re-emerged in the structured products market as managing director and founder of his own firm, Structured Investment Solutions Limited. Bastiman told SRP that Structured Investment Solutions […]

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Risks of Structured Investing

Whilst there are many benefits of structured solutions, there are also risks associated with purchasing them that often mirror those of other investments. Below is a table showing some of the risks that might be associated with a structured investment and some potential mitigating factors. Investors who are not sure whether a structured investment is […]

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FSA Review – poses more questions?

Identifying your target clients and designing solutions to their problems/needs does not sound like rocket science. Nor does having a robust process for testing and bringing them to market and ensuring they do what it says on the tin. Yet the FSA take the view in the final guidance on Retail Product Development and Governance* […]

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What is a structured fund?

Funds are types of collective investment scheme that pools money from many investors to purchase securities. They are often available to the public, governed by regulations and managed by investment professionals. Funds may invest in equities, bonds, cash and depending on the type of fund derivatives, commodities and property. Structured funds share many of the […]

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What is a structured deposit?

A traditional fixed rate deposit pays a fixed interest rate at the end of a pre-agreed period. A structured deposit works the same way except that the interest rate varies with the price of an asset. The asset may be a basket of equities, index, fund, currency, commodity or property market. For example, a five […]

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What are structured notes?

A structured note is a type of bond issued by a bank or a company. A traditional bond repays the principal invested at maturity and a fixed or variable interest rate during its life. Whereas, the interest rate or repayment amount for a structured note is determined by reference to the price of an asset. […]

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What are covered warrants?

A traditional warrant is a security issued by a company whereby the owner has the right to buy shares in that company for a fixed price (the strike price) on a pre-agreed date (the expiry date). The purchaser pays a premium for the warrant and the maximum loss is limited to this premium. Whereas, the […]

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What are options?

An option is a contract between two parties whereby the owner acquires the right to receive (a Call Option) or deliver (a Put Option) an asset at a pre-agreed price (the Strike Price) or the cash equivalent of the difference between the Strike Price and value of the asset (the Determination Price), upon a pre-agreed […]

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