You’ve heard of structured products. These largely were (and are) complex securities based on lots of streams of cash in underlying loans whose flows were not well predicted. There was a credit crisis associated with them in 2008.

Now come “synthetic” exchange-traded funds, where interest-rate swaps and other derivative products are used to replicate the performance of a securities index.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access