Structured product
As a structured financial product (also: structured product with a derivative component ) is defined as a financial instrument or more underlyings and additionally consists of a derivative of a component.
Structured financial products are a specific risk profile match, that is, they are tailored to certain expectations with respect to the performance of the underlying. Through the countless possible combinations of different underlying derivatives all possible scenarios and the underlying combinations can be covered basically.
With these products, it is also possible small investors to speculate on certain market scenarios.
- 3.1 Advantages
- 3.2 Risks
Construction
Underlying
Underlying assets are typically:
- Shares
- Bonds
- Futures
Delta 1 products, such as index certificates, but do not count as structured products, since they have no leverage component.
Derivative component
The derivative component may be wholly or partially financed from the cash flows of the underlying instrument. Furthermore, they must have a significant impact on the pricing of the security.
It is intended to
- To reduce the risk and / or cost or
- To generate additional revenue.
Examples
The structured products are from the private investor segment:
- Bonus Certificates
- Participation certificates
- Discount certificates and reverse convertibles
- Lever Certificates
- Guarantee Certificates