OTC Derivatives for Retail Investors

Harry Kat

ICMA Centre Discussion Papers in Finance from Henley Business School, University of Reading

Abstract: In this paper we report on a new class of derivative products which we refer to as equity-linked savings products. Equity-linked savings products require investors to pay periodic instalments in return for a predefined equity-linked payoff at maturity. We discuss the structuring, hedging, pricing and marketing of a variety of equity-linked savings products in detail, paying particular attention to the case of The Netherlands where equity-linked savings products are currently very popular with an estimated USD 2 billion issued over the last three years. Reverse engineering of a recent issue shows that the profit margins which product providers may be able to achieve on equity-linked savings products are extremely high.

Pages: 38 pages
Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.icmacentre.ac.uk/pdf/discussion/DP2000-11.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.icmacentre.ac.uk/pdf/discussion/DP2000-11.pdf [302 Found]--> https://www.icmacentre.ac.uk/pdf/discussion/DP2000-11.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rdg:icmadp:icma-dp2000-11

Access Statistics for this paper

More papers in ICMA Centre Discussion Papers in Finance from Henley Business School, University of Reading Contact information at EDIRC.
Bibliographic data for series maintained by Marie Pearson ().