GO
Loading...

Enter multiple symbols separated by commas

Your Portfolio Needs Structured Products: Strategist

Although the global financial crisis was triggered in large part by a meltdown in the structured products space, there is still a place for this instrument in investors' portfolios, said Norman Villamin, head of investment analysis and advice at Citi Global Wealth Management Asia Pacific.


"I think structured products certainly have a place in people's portfolio and I think they are an important way to manage risk for people," Villamin told CNBC.

A year-and-a-half ago, many people used structured products for speculation, but increasingly people are using it for risk management and for position management, he noted.

Many were badly hurt when credit markets froze as they did not fully understand the complexities of minibonds and credit derivatives, but with that experience in hand, Villamin said he is is positive it will give this investment vehicle a leg up.

"I think going forward ... a lot of people (will be) a bit more cautious, a bit more thoughtful about the size of the positions they are taking relative to their overall portfolio and really try to understand better how to use structured products,” he said. “And so to a certain extent, it was a learning experience, it was a good thing for the maturity of the business."

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Mark Cuban and Donald Trump

    Donald Trump appears to have Mark Cuban's vote, at least in terms of how the billionaire real estate mogul is conducting his political campaign.

  • Ferrari 488 Spider

    Ferrari's new 488 Spider will have a V-8 turbo engine and a retractable hard-top roof that lowers in just 14 seconds.

  • Members of the New Horizons science team react to seeing the spacecraft's last and sharpest image of Pluto before closest approach later in the day at the Johns Hopkins University Applied Physics Laboratory (APL) in Laurel, Maryland July 14, 2015.More than nine years after its launch, a U.S. spacecraft sailed past Pluto on Tuesday, capping a 3 billion mile (4.88 billion km) journey to the solar system's farthest reaches, NASA said.

    The New Horizons Pluto flyby mission set records for NASA's social media and web metrics——but why do we care so much?

U.S. Video