Financial institutions regularly introduce new investment products; for example: the special structured bond. The market for this new investment product has grown at a spectacular rate in recent years, partly as a result of falling share prices at the beginning of this century. In December 2007 nearly 300 special structured bonds were quoted on the Amsterdam stock exchange, representing a total amount of more than 20 billion euro.
The return on this product depends on developments in the value of the underlying product, for example a share index, commodities, currencies or alternative energy sources. This offers investors the opportunity to invest in exotic markets and products that are normally difficult or impossible to penetrate. For some special structured bonds the return is the priority, while for others this is risk control. In some cases, the initial investment sum product is underwritten.
Special structured bonds