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I believe in Indexing...but where is the catch in the "beauty" of structured products? (Reverse convertibles).


Since college I have been reading articles and books written by Bogle, Siegel, Clements and Malkiel. My coclusion was that Indexing and long term investing was the best way to go.

Now I work at an investment bank and have discovered the "beauty" of structured products. It seems as if these products give you the best of three worlds: Stocks (returns), bonds (capital protection) and options (flexibility).

I wonder what is the catch in these products? With returns as high as 30% in 1 year and 35% capital protection, leaves me wondering if the theories from the good fellas of long term investing have become obsolete? Any one has an opinion on this regard?

try a salon?

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