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Displaying 71-75 out of 75 results for "Structured Products".

Binary Options

Last week, we went through the basics of traditional options including their terminology and payoff structure. Today we're going to talk about another, more complex, type of option: the binary (or 'digital') option. This type of option pays either one thing (for example a stock or cash) or nothing depending on the price of an asset relative to the strike price of the option.

Binary options are considered 'exotic' options because they are not traded on major exchanges the way traditional...

The Basics of Options Contracts

In a lot of our research work, we break down complex financial products into simpler pieces and then value those simple pieces one at a time. Often, those smaller components are options contracts (especially in our structured product work), which are relatively easy for practitioners to value. However, options contracts use a peculiar terminology that can be confusing to the uninitiated, so we thought we would lay out exactly what we mean when we talk about options.

Options contracts are...

SLCG Research: Dual Directional Structured Products [Update]

We have significantly updated our working paper on dual directional structured products (or simply dual directionals). Since our first version of the paper, our work has been covered by and in November of 2012 named a dual directional as their trade of the month. The latest version of the paper is available from the SLCG website and SSRN.

In this version of the paper, we expanded our scope by studying all dual directionals registered with the SEC since 2008. We divide dual...

Structured Products: 2012 Year-End Market Review

Last year, we covered Bloomberg's summary of the 2011 structured product market by noting that almost "$45.5 billion worth of SEC registered structured products were sold in the US in 2011, down only slightly from $49.4 billion in 2010." In 2012, 7,909 notes totaling just over $39 billion worth of SEC registered structured products were sold in the US -- a decrease of nearly 15%.

Interest rate products continued their decline in popularity with a decrease of almost 30% from 2011 to 2012....

ETP Turnover in 2012

2012 was a busy year for the exchange-traded product (ETP) market. As we've noted before, many new funds have been created, and many others have been closed and liquidated. The analysts at IndexUniverse have been keeping track, and have produced the final year-end tally for 2012.

In all, 178 ETFs or ETNs were launched in 2012. iShares (BlackRock) was the largest issuer in terms of number of new funds, but the market was highly divided such that 44% of funds were launched by the smallest 26...

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