TY - JOUR T1 - Equity-Linked Savings—Part I JF - The Journal of Alternative Investments SP - 29 LP - 36 DO - 10.3905/jai.2001.318985 VL - 3 IS - 4 AU - Harry M. Kat Y1 - 2001/03/31 UR - https://pm-research.com/content/3/4/29.abstract N2 - In this first part of a two-part article, the author reports on a new class of derivative products that he refers to as equity-linked savings products. Equity-linked savings products require investors to pay periodic installments in return for a predefined equity-linked payoff at maturity. The structuring, hedging, pricing and marketing of a variety of equity-linked savings products are discussed in detail, paying particular attention to the case of The Netherlands where equity-linked savings products are currently very popular with an estimated USD 2 billion issued over the last three years. Reverse engineering of a recent issue shows that the profit margins that product providers may be able to achieve on equity-linked savings products are extremely high. ER -