Examples of Structured Finance Products
Structured finance products are a broad category of financial instruments that provide investors with exposure to underlying assets, typically by investing in a small amount. These products may offer high returns but also come with high risks and costs.
The products can be based on market indices, currencies, commodities, interest rates or a combination of these. They can also incorporate embedded derivatives such as options and futures.
Guaranteed Deposits
A deposit is a sum of money that a customer keeps in his or her bank account. A deposit guarantee scheme protects the deposits of all depositors, regardless of their citizenship or place of residence.
The European Union has harmonised deposit-guarantee schemes since 1994. This is in response to the financial crisis, which showed that bank failures did not stop at national borders.
Directive 94/19/EC requires all Member States to have a deposit guarantee scheme for at least 90% of the …
Examples of Structured Finance Products Continue Reading >>>