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"Hi Wilfred, I hope to get your opinion on the Risk Classification of XXX product. XXX is a a structured product with YYY reference entities. There is no effect on capital and payout with the fall of the first ZZZ entities. However there is substantial impact at the fall of the JJJth entity. At the fall of the KKKrd entity the full capital is erased. How do you classify the RISK of this plan? - Mrs P"
Dear Mrs. P,
Risk classification is just nonsense to me. There is no such thing as a product being a low risk or a high risk. It depends on the client's existing portfolio, financial objectives and personal experience. Read more...[caption id="attachment_1461" align="alignright" width="150" caption="Photo by -bast-"][/caption]
"Hi Wilfred, I hope to get your opinion on the Risk Classification of XXX product. XXX is a a structured product with YYY reference entities. There is no effect on capital and payout with the fall of the first ZZZ entities. However there is substantial impact at the fall of the JJJth entity. At the fall of the KKKrd entity the full capital is erased. How do you classify the RISK of this plan? - Mrs P"
Dear Mrs. P,
Risk classification is just nonsense to me. There is no such thing as a product being a low risk or a high risk. It depends on the client's existing portfolio, financial objectives and personal experience. Read more...
[/caption]
"Hi Wilfred, I hope to get your opinion on the Risk Classification of XXX product. XXX is a a structured product with YYY reference entities. There is no effect on capital and payout with the fall of the first ZZZ entities. However there is substantial impact at the fall of the JJJth entity. At the fall of the KKKrd entity the full capital is erased. How do you classify the RISK of this plan? - Mrs P"
Dear Mrs. P,
Risk classification is just nonsense to me. There is no such thing as a product being a low risk or a high risk. It depends on the client's existing portfolio, financial objectives and personal experience. Read more...
