Does anyone have any ideas on how to implement??? I've been looking for a way to protect investors (Sinking fund concept) Either through Insurance or any other means. CPPI, Trust, any experience with this??? What do you think would be the cheapest and most Proper Structure to get the idea covered??? Not intentionally looking to lose money, however I want to go after bigger clients and bring with me alittle risk reduction for the bigger accounts. Only example I have found is the structure mid to bottom of the page. http://www.investmentbankingsolutio...estorsHedge.htm Other posts Iâve made to no avail http://www.elitetrader.com/vb/showthread.php?s=&threadid=134635
Not gonna work... Only thing of a similar nature I have seen in practice is NAV trigger, but that's extremely dangerous and doesn't really provide any sort of guarantee. In general, as an investor, I'd be extremely skeptical of everything that has 'principal-protected' on it. In my experience, any such label suggests that the product is a nasty mess created by a bunch of clueless financial engineers, who have no idea what happens when the proverbial sh1t hits the fan. That's my 2c, for you.
AIG might help you out. The concept doesn't sound like anything else besides a marketing ploy. Do you really think there are any firms out there that want to insure traders? They would be broke after a few months if you look at the trend of hedge funds.
You guys act like there's no such thing as Sinking Funds, CPPI, or Zeros that can 100% guarantee the principal, while you actively manage the % of dollars thats not required to maintain the Sinking Fund Coverage. Sry to be the one to tell you, not a marketing ploy. I was just wonderin if any in Elite have had EXP in this area...
Thanks for all the messages... Merrill Lynch's MITTS are basically what I am trying to create. Didnt realize it was a Preferred Stock situation but that makes sense. How does the small guy create preferred(s) with the MITTS like structure???