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Structured products

Hi

In the notes it states on page 41 of Chapter 5 that
in some, more complex, structured products, the amount invested in the zero-coupon debt security can vary dynamically over time depending on a predetermined view.
Can you give an example of how this might work? I was thinking perhaps that it could be lifestyling, so that a larger amount of capital is protected as the product approaches maturity? If this is the right idea, are there any other examples of this?

It then goes on to say:
In others, the capital protection may in itself be dependent on the performance of the underlying assets.
Can you give an example of this?

Later in the chapter it says that there may be Accounting benefits - It may be structured so as to avoid income statement volatility from the u/l derivatives. How could this be achieved?

Thank you
 
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I would struggle to answer this one. I dont know what structured products that CR writers would have had in their mind at the time of writing. Structured products can target very peculiar targets such as "better of 90% of FTSE100 and 90% of S&P500, or 90% of money invested back". the derivatives and zero coupons required to match these might be quite complex, and vary.
 
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