RT Journal Article
SR Electronic
T1 Traditional and Alternative Investments
JF The Journal of Alternative Investments
FD Institutional Investor Journals
SP 9
OP 29
DO 10.3905/jai.1999.318946
VO 2
IS 2
A1 Thomas Schneeweis
A1 Richard B Spurgin
YR 1999
UL https://pm-research.com/content/2/2/9.abstract
AB While traditional forms of investment products such as public funds still dominate the investment industry, both traditional and alternative investments have experienced recent innovations in their structure. Many of these (structured notes, swaps) are much simpler than they appear, and can offer highly tailored exposure to unique sources of return. Expanding the set of investment opportunities through new structures results in unique return patterns that cannot be replicated through traditional stock, bond, and real estate investment strategies. As a result, these new product forms may increase the economic benefits available to current investors. In this article, the economic bases for new product forms and security design are discussed, and simulation examples of the return opportunities made available through both guaranteed structured notes and swaps are offered.