US roundtable: The best defence
Structured products are still regarded with suspicion in some quarters. In the wake of commentator Janet Tavakoli’s trenchant criticisms of the industry, Structured Products speaks with some leading US market participants who want to set the record straight
On June 21, 2006, University of Chicago professor Janet Tavakoli spoke out against the $75 billion US structured products industry. With substantial coverage in the Wall Street Journal, on CNBC, and a followup press release, Tavakoli questioned the virtues of structured products as an investment class. Purchasers run the risk of “buying a tricycle at Ferrari prices”, she said, adding that “investors can lose more than their original investment”. In effect, Tavakoli painted structured products as
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