1.1 Markets for structured products
What are structured products?
Financial instruments that are designed to facilitate certain highlycustomized risk-return objectives.
In its simplest form, this can be accomplished by taking a traditionalsecurity, like an investment-grade bond, and replacing the usual pay-ment features with non-traditional payoﬀs derived, say, from the per-formance of one or more underlying assets or indices (equity-linkedpayoﬀ).
Widely accessible to retail investors in the same way like that of stocks,bonds, exchange-traded funds (ETFs) and mutual funds.