Are structured income products likely to take off?

structured products

Structured income products are still uncommon but more types of these products should develop so advisers and investors have greater choice going forward

The first major event in the history of income-producing structured products was the precipice bonds experience. These products completely dominated the structured products market between 1999 and 2001. But with the severest bear markets for many years between 2000 and 2003, a lot of these products lost significant amounts of capital, although many of them returned full capital or better, when the income drawdown was taken into account. Fortunately, providers and advisers seem to have swiftly learned the lessons of this experience and income products are now very different. Today the most...