AccessMyLibrary provides FREE access to millions of articles from top publications available through your library.
Create a link to this page
Copy and paste this link tag into your Web page or blog:
from BUSINESS LINE, October 05, 2008 Asset prices have crashed globally due to the financial mess on Wall Street. It is in times such as these that asset management firms peddle products that allay investors' fears and encourage them to regain exposure to the stock market.
One of our clients was recently offered such a product, similar in structure to the principal-protection notes (PPNs).
This article discusses the characteristics of PPNs, also called as capital-guarantee products, and shows why the plain-vanilla version may not be optimal for investors.
It also shows how asset management firms can custom-tailor products to enable investors fulfil their horizon objectives.
Principal-protection notes The product plays on an important …