Glossary

Structured Products

It is difficult to get a standard definition for what is a bespoke investment vehicle which employs derivatives to create a certain risk-reward profile designed to achieve a specific set of objectives. "Structured products" generally work by using a traditional security, such as an investment-grade bond, and replacing the usual payment features such as periodic coupons and final principal with non-traditional payoffs derived from the performance of one or more underlying assets.