A recent structured product that used an absolute return strategy as its underlying index matured with a 10% loss to investors (on the 90% capital guaranteed version of the product).
Interesting post Gary- but have you understated the real loss to clients? Lets can assume most money going into these products is a switch out of deposits - given that interest rates were probably 4%pa or more - the real loss here is probably closer to 30%.
I wont say there is mis-selling going on with structured deposits as some of you guys on this site immediately jumped at me for even suggesting this! But is it time for these products to be banned to protect vulnerable investors?