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Our experts frequently write blog posts about the findings of the research we are conducting.

Displaying 161-170 out of 228 results for "Principal Protected Notes".

FINRA Issues Warning on ETNs

(Jul 2012)

The Financial Industry Regulatory Authority (FINRA) recently issued an Investor Alert regarding the risks of exchange-traded notes (ETNs).

ETNs are a type of unsecured debt instrument typically issued by banks and other financial institutions. Similar to its close cousin the exchange-traded fund (ETF), ETNs track the returns of a specified asset class--often an index. However, unlike ETFs, ETNs do not hold actual assets tracked by the underlying index. This means investors in ETNs can suffer...

Buffered and Capped Closed-End Funds

(Jul 2012)

Last Friday the Wall Street Journal reported on a new product which combines features of both structured notes and closed-end funds. The eUnit 2 Year US Market Participation Trust IIwas first issued by Boston-based investment company Eaton Vance on May 30. This was the second offering by Eaton Vance of such a product: the first trust with identical name debuted on Jan 26.

Inessence, the eUnit Trust is like a structured note with capped upside potential and buffered downside loss. At the end...

FDIC Warns Investors about Structured CDs

(Jul 2012)

Earlier this year, the Federal Deposit Insurance Corporation issued a warning about structured certificates of deposit (CDs), which are hybrid investments combining features of both traditional CDs and structured products. FINRA has also recently investigated the market for structured CDs, which has been estimated to be as large as $30 billion.

Structured CDs are essentially bank deposits whose interest payments depend on the value of a reference index instead of a predefined fixed or...

Another ETN Halts New Share Redemptions, Creates Premium

(Jul 2012)

In March we reported on TVIX, the leveraged volatility-linked exchange-traded note (ETN) which started trading at a very large premium to indicative value after its issuer halted the creation of new shares. Bloomberg's Matt Robinson is reporting that AMJ, a JPMorgan ETN linked to oil partnerships, has also limited new share creations and is developing a similar premium.

JPMorgan limited new share creations on June 14, and the premium to indicative value (the value of the underlying index) has...

SEC Litigation Releases: Week in Review - June 29th, 2012

(Jun 2012)

SEC Shuts Down Mortgage Fund Ponzi-like Scheme
June 28, 2012, (Litigation Release No. 22406)
According to the complaint (opens to PDF), Small Business Capital Corp. ("SB Capital") and Mark Feathers ("Feathers"), its principal, are operating an "alleged Ponzi-like scheme." $42 million have been raised by SB Capital and Feathers through selling securities issued by their mortgage investment funds, Investors Prime Fund, LLC and SBC Portfolio Fund, LLC ("Funds"). The Funds attracted more than 400...

SEC Litigation Releases: Week in Review - June 15th, 2012

(Jun 2012)

Promoters of Convicted Ponzi Scheme Operator Jeffrey L. Mowen Ordered to Pay Over $20 Million in Disgorgement and Civil Penalties
June 13, 2012, (Litigation Release No. 22393)
The US District Court for the District of Utah granted the SEC's motion for entry of final judgment against Defendants Michael W. Averett, Michael G. Butcher, Thomas R. Fry, Gary W. Hansen, James B. Mooring, and Bevan J. Wilde, who allegedly "acted as promoters...through the unregistered offer and sale of high-yield...

SEC Litigation Releases: Week in Review - June 8th, 2012

(Jun 2012)

Court Enters Final Judgments, Including Indemnity Bars, Against Rajnish K. Das and Stormy L. Dean, Former CFOs of infoUSA, Inc.
June 1, 2012, (Litigation Release No. 22388)
As a result of the SEC complaint against Rajnish K. Das and Stormy L. Dean, the US District Court for the District of Nebraska barred the pair from serving as an officer or director of a public company for three years and levied a civil penalty of $50,000 against each of them. In the complaint, the SEC alleged Das and Dean...

SEC Litigation Releases: Week in Review - June 1st, 2012

(Jun 2012)

SEC Charges Two Feeders for One of South Florida's Largest-Ever Ponzi Schemes,
May 31, 2012, (Litigation Release No. 22383)
The SEC charged George Levin and Frank Preve with perpetrating a Ponzi scheme through which they raised nearly $160 million from close to 200 investors in less than two years. The defendants used the investor funds to purchase (fraudulent) discounted legal settlements from Scott Rothstein (former Florida attorney). Rothstein then used the investor funds to make Ponzi...

SLCG Research: Dual Directional Structured Products

(May 2012)

Earlier this month, SLCG released a new research paper that values Dual Directional Structured Products (DDSPs). DDSPs are debt securities that feature payoffs very much like a long straddle position on the underlying asset for small price movements -- the investor realizes gains if the underlying asset increases or decreases in price (the origin of the term 'dual directional') within a certain range during the term of the note.

DDSPs differ from a conventional straddle position in a number...

Bill Luby on VIX-Related Exchange-Traded Products

(Apr 2012)

Bill Luby, who writes at the VIX and More blog and Expiring Monthly: The Options Traders Journal, is one of the most respected voices on all things related to the CBOE S&P 500 Volatility Index, also known as the VIX. We highly recommend anyone interested in the VIX and volatility-related derivates check out his blog, which has a variety of useful analysis and commentary.

Recently there has been a lot of coverage related to TVIX and otherexchange-traded products linked to the VIX. Here at...

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