Towards Sustainable Financial Markets: Impact of Structured Securities on Portfolio Management
Volume 6, Issue 2 (2016), pp. 275–288
Pub. online: 30 December 2016
Type: Article
Open Access
Published
30 December 2016
30 December 2016
Abstract
Financial globalization created an environment for structured product development in financial markets. With the help of these instruments it is possible to transform an asset into a new investment vehicle, that opens new investment possibilities for risk averse investors, along with those investors who are searching for higher yield. This paper analyses different structured products and their influence on investment management using ratio analysis, Markowitz portfolio optimization model and Monte Carlo simulation. Analysis revealed that structured products have a significant positive effect on investment management on diversification and yield enhancement sides.