Avoided like the plague during the financial crisis, structured products are reviving like green shoots after a long awaited rain. Dual Currency Deposits in particular, have been really popular. Depositors may not have understood the risks involved. Read the article – Dual Currency Deposits – Do You Know You [...]
Just after posting on The Return of Accumulators, The Straits Times today reported that a well-known scientist is suing Deutsche Bank for breach of legal duties and misrepresentation.
For a period of 4 months between November 2007 to February 2008, 34 accumulator contracts involving 4 banks, Citigroup, UBS, Societe Generale [...]
Just like what Arnold Schwwarzenegger promised in the science fiction thriller The Terminator, Accumulators are back!
The Straits Times carried a report “‘Killer’ stock derivatives make comeback” on 01 Sept 09 edition of The Straits Times. The original article was report by Wall Street Journal which can be found here. [...]
Following the blowups of Lehman Minibond, DBS High Notes, Merrill Lynch Jubliee Notes and Morgan Stanley Pinnacle Notes, Greatlink Choice Funds, another similar product introduced by Great Eastern (GE), has also ran into potential problems. Below is my attempt to explain how the funds work and the difference between Greatlink Choice and the other products.
The Risk Management Institute (RMI) of the National University of Singapore (NUS) conducted a talk title ‘Structured Financial Products: Are they they right for you?’ yesterday. The talk was delivered by Dr Oliver Chen, Programme Director of the Masters of Science (Financial Engineering). This was part of the RMI lecture series on Enhancing [...]
The Monetary Authority of Singapore (MAS) announced that actions have been taken to terminate the swap agreements in the Underlying Securities of Minibond series 1 to 8. No such move is needed for series 9 and 10 as the underlying securities are corporate bonds and not Synthetic Collateral Debt Obligations (Synthetic CDO).
The Strait Times reported today that an Indonesian couple has sued UBS Singapore for losses in currency derivatives called Accumulators. Accumulators can be linked to Shares or currency. This form of structured product has also caused Citi Pacific to potentially lose US$2 billion when the Australian dollar plunged against the US dollar recently. It has [...]
Many investors and non-investors alike, including me, have been baffled by the complexity of the Lehman-linked structured notes. I will attempt to shed some light on the inner workings based on what I managed to figure out. Most of the information found here are from the Lehman Minibond Base Prospectus and Minibond Series 2 Pricing Statement. The following [...]
