Here is a dispute between a wealthy individual and his bank with regard to a complex investment product called 'Accumulator'. It is interesting that the legal proceedings Teo Wai Cheong v Crédit Industriel et Commercial [2011] SGCA 13 were full of examples of how the 'Accumulator' works. The jargons - spot price, forward price and 'Knocked-out' made my brain got Knocked-Out. I pity rich investors. Can they truly understand what they are buying? Do they really know who are their counterparties? Can they measure the actual counterparty risks involved? What are they trying to do investing in such a complex product? Is traditional asset allocation too boring that they have to resort to such a complicated product? If the rich have so much money to waste, can they think of others less fortunate and donate these unwanted monies to the poor ......Written by Wilfred Ling Tuesday, 19 April 2011
Here is a dispute between a wealthy individual and his bank with regard to a complex investment product called 'Accumulator'. It is interesting that the legal proceedings Teo Wai Cheong v Crédit Industriel et Commercial [2011] SGCA 13 were full of examples of how the 'Accumulator' works. The jargons - spot price, forward price and 'Knocked-out' made my brain got Knocked-Out. I pity rich investors. Can they truly understand what they are buying? Do they really know who are their counterparties? Can they measure the actual counterparty risks involved? What are they trying to do investing in such a complex product? Is traditional asset allocation too boring that they have to resort to such a complicated product? If the rich have so much money to waste, can they think of others less fortunate and donate these unwanted monies to the poor ......
Here is a dispute between a wealthy individual and his bank with regard to a complex investment product called 'Accumulator'. It is interesting that the legal proceedings Teo Wai Cheong v Crédit Industriel et Commercial [2011] SGCA 13 were full of examples of how the 'Accumulator' works. The jargons - spot price, forward price and 'Knocked-out' made my brain got Knocked-Out. I pity rich investors. Can they truly understand what they are buying? Do they really know who are their counterparties? Can they measure the actual counterparty risks involved? What are they trying to do investing in such a complex product? Is traditional asset allocation too boring that they have to resort to such a complicated product? If the rich have so much money to waste, can they think of others less fortunate and donate these unwanted monies to the poor ......
