Structured Products: Performance, Costs and Investments

40 Pages Posted: 20 Jun 2015 Last revised: 18 Jul 2016

See all articles by Dietmar Maringer

Dietmar Maringer

University of Basel

Walter Pohl

University of Zurich

Paolo Vanini

University of Basel

Date Written: July 17, 2016

Abstract

This paper analyzes structured products with a focus on the Swiss market. Empirical results for these products’ five major categories are presented, along with case studies and a general discussion. The paper addresses three main questions: How did structured products perform in the period starting in the Great Financial Crisis 2008 until 2014? The study shows that 80% of all issued products have a positive performance. What are the costs for investors at issuance? How can structured products be used? Several case studies distinguish investments in normal market conditions from event-driven investments made when markets are under stress. A main focus is on the SNB and ECB decisions of January 2015: the removal of the EUR/CHF cap and the introduction of negative CHF interest rates, and the decision to apply a program of quantitative easing in the eurozone, respectively.

Keywords: Structured Products, Costs, Performance, Investor Behaviour, Event Driven Investments

JEL Classification: G10, G13, G14, G19, D24

Suggested Citation

Maringer, Dietmar and Pohl, Walter and Vanini, Paolo, Structured Products: Performance, Costs and Investments (July 17, 2016). Available at SSRN: https://ssrn.com/abstract=2620300 or http://dx.doi.org/10.2139/ssrn.2620300

Dietmar Maringer

University of Basel ( email )

Petersplatz 1
Basel, CH-4003
Switzerland

Walter Pohl

University of Zurich ( email )

Rämistrasse 71
Zürich, CH-8006
Switzerland

Paolo Vanini (Contact Author)

University of Basel ( email )

Petersplatz 1
Basel, CH-4003
Switzerland

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