Structured products are “an accident waiting to happen” for many retirees, with the inflexible terms and conditions of the product likely to have left investors exposed to losses following this year’s sell-off, according to 7IM.
Many structured products have terms that allow them to absorb some level of losses before the end investor starts to lose money. The scale of the falls seen in 2020 - when markets shed as much as a third of their value - means there is a real chance that many products will now be "underwater", according to Matthew Yeates, senior investment manager at 7IM. "Structured products specifically would have been among the most volatile products to own through the period, and given the scale of the falls in markets we have seen, the drawdown across parts of the structured products market has b...
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