How to invest in structured products: a guide for investors and asset managers

Never has there been a greater need to fully understand the investments and allocation choices you are making How to Invest in Structured Products is a onestop shop for asset managers looking to understand and make the right investments in structured products. The overarching theme of the book is one of objectivity, explaining in detail, the strengths and weaknesses of each structure, and why certain structures may be unsuitable for specific parties. The book begins by introducing structured products by way of a basic guide so that readers will be able to understand a payoff graphic, read a termsheet or assess a payoff formula, before moving on to the key asset classes and their peculiarities, and then on to more advanced subjects such as structured products construction and behavior. It then moves on to explain how to avoid important pitfalls in products across all asset classes, pitfalls that have led to huge losses over the past year, including detailed coverage of counterparty risk, the fall of Lehman Brothers and other key aspects of the financial crisis related to structured products. The book is supported by numerous figures, payoff diagrams and tables, and includes a unique questionnaire which enables the reader to define his or her own preferred return distribution and select the best fitting products. Tables of Contents Goal of this book Who should be interested Contentsummary Introduction part I Generalities about structured products a definition by analogy Reading a payoff diagram Reading a payoff formula Reading a termsheet Final Terms and Conditions Early Redemption Shark Note on ABC 30 Index (in EUR) The categories of structured products Capital guaranteed products Yield enhancement Participation Behavior of structured products during their lifetime Main valuation and risk measures Capital Guarantee Yield Enhancement Participation products Other participation products Common special features of structured products Quanto Options Barrier Options Autocall and callable options Rolling products and products without fixed maturity Conditional and accumulating Coupons Functionality options of structured products Physical or cash delivery with equity-based products Clean price and dirty price Lending values Issue minimum / maximum size and liquidity Funding rates and counterparty / creditrisk FX, fixed income and commodity products FX based structures Fixed Incomestructures Commodity products Recent developments Customized index products Actively managed certificates Introduction Part II Classical theory and structured products The Modern Portfolio Theory The Capital Asset Pricing Model The Efficient Market Hypothesis Classical theory and practice Classical theory and structured products Conclusion Structured solution proposal The investor's preferred distribution of returns Preferred return distribution process versus classic portfolio management An investor's utility (value) curve Questionnaire Distribution classes: the distribution of returns cube An analysis of return distributions of structured products Introduction Procedure and data Capital guaranteed products Yield enhancement products Participation products Conclusion:product classification Portfolio construction Process description Considered products Sample Portfolios Final words Appendix A: Glossary of terms Appendix B: Questionnaire Appendix C: table of Figures Appendix D: table of Payoffs Appendix E: table of Tables Appendix F: index information

• ISBN: 978-0-470-74679-0
• Editorial: John Wiley & Sons
• Encuadernacion: Cartoné
• Páginas: 384
• Fecha Publicación: 14/08/2009
• Nº Volúmenes: 1
• Idioma: Inglés