Structured Notes

Although most structured notes are fine, however, it has become an even more risky proposition ever since the credit crisis started. Since most notes are guaranteed by a handful of firms at the top who did roaring business over the last several years, but the investors are now wakening up to the fact that a capital guaranteed product is only as good as the company guaranteeing the funds. In the case of Lehman brothers recently, all its guaranteed notes have collapsed and taken their investors moneys along with it and have excacerbated the crisis somewhat further.

Read this interesting article on the structuring of products and the sad, sad story of all investors who were holding their notes.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aPQXoCH.fIa0&refer=home