Talk:Structured product
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Page Needs Complete Overhaul edit
The information in this article is confusing, and at times completely false. There is no requirement that a structured product use derivatives. See e.g., cash CDOs. —Preceding unsigned comment added by Erdosfan (talk • contribs) 18:31, 10 February 2009 (UTC)
The opening paragraph states that structured products are "synthetic" instruments. The way the industry uses the term, synthetic typically implies a credit derivative, which may or may not be the case for structured products. For examples, an agency CMO is an example of a structured product but is "cash" product, but not synthetic. A CDO may be cash (owning the cash bond which form the assets of the CDO) or synthetic (consisting of credit derivatives on the underliers).
I would respectfully suggest that word "synthetic" be eliminated The word "derivative" would also be confusing, for similar reasons--it implies a swap contract. In addition, "CMO derivatives" typically refer to specific types of CMO tranches, such as inverse floaters.
I understand the intent of the usage of the word; the writer wants to convey that the structured security is based on another security or obligation. I simply think that "synthetic" or "derivative" are misleading terms because of their alternate specific meanings.
Removed old rule edit
Please note that SEC rule 434 stated in the article is no longer in force. It has been removed as of Dec. 1, 2005.--91.63.113.205 (talk) 10:20, 18 May 2008 (UTC)
Wiki Education assignment: Public Writing edit
This article was the subject of a Wiki Education Foundation-supported course assignment, between 7 September 2022 and 8 December 2022. Further details are available on the course page. Student editor(s): Sdawar16 (article contribs).
— Assignment last updated by Sdawar16 (talk) 01:16, 7 October 2022 (UTC)