By: PanzerGrenadier All investments come with risks and it is unfortunate for some retail investors to face the potential loss of their entire investment in the DBS High Notes 5 that is linked to Lehman Brothers as the collapse of the investment bank is one of the credit events that leads to the unwinding of the structured deposits. Some investors were tempted by the potential high returns of 5% but were shocked to learn that they could potentially lose all their investments. Structured deposits have been around for quite some time and I do not understand how they work because they are securities that have derivatives components and all monies could be wiped out in the event of credit or market eevnt which sounds so harmless but is becoming more common as investment banks are wiped out by the depth of their losses in subprime markets. I have stayed away from them because I do not understand what they are. Warren Buffet consistently tells people to invest in what they understand and not to overestimate their circle of competence. How true and my own investing mistakes have typically been caused partly or wholly by a failure to understand the risks and returns trade-offs I was making in the investment. Have you been affected directly by the recent market turmoils? Share your experience in the comments section. Be well and prosper. Source: Five Cents Ten Cents