Volatility and falling markets force Canadian CPPI notes to cash out

Constant proportion portfolio insurance products in Canada have been punished by end-of-year market moves, as volatility and downward slides trigger protection cushions.

The structures work by automatically allocating investor funds between risky and non-risky assets. When volatility hits a certain level, the entire allocation shifts to the secure asset. In certain products, there is no possibility for further upside exposure once this occurs. Products in Canada suffered a rash of cashouts in Ju

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