Trade of the month: reverse convertibles

Trade of the month: reverse convertibles

Volatility makes reverse convertibles popular but beware the risk

For most investors and advisers, structured products are about risk control, which explains the appeal of capital-protected notes and super-tracker products. Reverse convertibles, by contrast, are an aggressive, high-yield product that includes significant risk to capital.

Most structured products involve the purchase of an option and a zero-coupon bond, which is how capital-protected products are created, for example. The investor maintains capital protection and gives up interest in return for

To continue reading...

You need to sign in to use this feature. If you don’t have a 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: