CPPI retooled

Funds

The infamous May 2006 market correction sent shivers down the spines of structurers. At the time, the most common answer to questions regarding the impact of the correction was "wait and see". But almost one year on, the effects of the market movements are becoming clearer by the day. Weaknesses in constant proportion portfolio insurance (CPPI) mechanisms, at least, have been well documented. As markets suffered, so did CPPI structured products, inevitably meaning that some CPPI-based produc

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