19 Pages Posted: 20 Oct 2010
Date Written: October 19, 2010
In many countries structured investment products are popular among retail investors. We explain the demand for these products using unique field data where we let subjects freely design their "favorite" structured product. Results suggest that the supply with capital protected products (guarantee certificates) might indeed be demand-driven. This does not seem to be the case for other product categories where marketing and sales practices might play a more important role. In a survey among financial practitioners we find furthermore that a demand for capital protected products can be explained by loss aversion and saving motifs, e.g. for buying a house.
Keywords: Structured financial products, capital protected products, loss aversion
JEL Classification: D84, G11, G21, C9
Suggested Citation: Suggested Citation
Rieger, Marc Oliver and Hens, Thorsten, Explaining the Demand for Structured Financial Products: Survey and Field Experiment Evidence (October 19, 2010). Available at SSRN: https://ssrn.com/abstract=1694373 or http://dx.doi.org/10.2139/ssrn.1694373