Constant proportion portfolio insurance

8. CPPI

"Each year, it seems, the structured credit market rolls out the "new next big thing" in synthetic risk transfer," notes a report published by Standard & Poor's in February 2006. "In 2004, it was the CDO-squared product. In 2005, it was the turn of leveraged super-senior transactions. Among the contenders for 2006 is credit-based constant proportion portfolio insurance (CPPI)."

Credit CPPI products are designed to protect investors' principal while simultaneously offering them upside potentia

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: