Structured retail investment products

Stefan Rogel
2014 unpublished
Reverse convertibles, bonus certificates which can be capped or uncapped, discount certificates and twin-win certificates are examples of structured retail investment products, which are commonly sold by Financial institutions to retail investors with the purpose of raising financing for their operations. This Master-thesis aims at analyzing four previous product issues in the Austrian market and is merely based on public information which was published by the issuers, academic literature and
more » ... her public sources for financial data. Throughout the analysis, the advantages, disadvantages and risks of these products are determined while valuing the products with a decomposition approach in order to finally determine under which market conditions an investment into these structured retail investment products can outperform a direct investment into their underlying. The findings deliver a valuable insight into the general set-up of these products and also finds that three out of four issues tend to be underpriced. Furthermore, it is found that investments into these products makes the most sense when the underlying stagnates.
doi:10.25365/thesis.32814 fatcat:czgatp7ervcitdv57xnfmg2k4e