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NeroTulip
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Joined: May 25th, 2003, 1:54 pm

Most common IR structured products

May 13th, 2004, 6:56 am

I suppose this has been discussed before, but I can't find it...What are the most common IR structured products? Range accruals, cancellable swaps, inverse floaters, what else? From the most simple to the most exotic, from the oldest to the newest, tell me all.
 
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greghm
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Joined: July 14th, 2002, 3:00 am

Most common IR structured products

May 13th, 2004, 4:35 pm

no one want to answer that one, I already tried, we should hook up with abumazen, he is also a Sales of IR I guesshere is what I have just found todayswaps variety
 
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pobazee
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Joined: September 23rd, 2003, 5:32 pm

Most common IR structured products

May 13th, 2004, 4:37 pm

The answer is cancellable swaps....
 
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greghm
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Joined: July 14th, 2002, 3:00 am

Most common IR structured products

May 13th, 2004, 4:54 pm

In fact it needs a classification between Hedging products and investing ProductsHedging Products are used mainly by Corporations.Investing are targeted toward Asset Management (hello Nerotulip), Banks, Insurances and Pension Funds.Selling Structured IR products to Corporations is tough cos' many don't have the right to sell options, so when you structure a Swap where the Client (corporation) pay an improved Swap rate, you try to make him sell a Cap or any other options....
 
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NeroTulip
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Joined: May 25th, 2003, 1:54 pm

Most common IR structured products

May 14th, 2004, 2:50 pm

Thanks to both of you.Greg, that link isn't too bad and the difference between investing and hedging products is interesting.Pobazee, something tells me you know more than that... what else is fairly widespread? Say you're a structurer, what do you bring with you when you visit a client?
 
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pobazee
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Joined: September 23rd, 2003, 5:32 pm

Most common IR structured products

May 14th, 2004, 3:09 pm

NeroTuliP:It depends on the client! I practiced the principle of "know thy client." Structured IR products are intended to provide solutions to client problems. I have a “playbook” of all the structures that have created in last two decades. If the client’s problem did not have a recognized solution per my “playbook,” then I proceed to use my financial engineering creativity to hatch out something, that something must meet the first principle, which is, is this solution (product) suitable for this client [suitability test]? That is how I played it as a structurer/trader, but I’m in the receiving side now, so I get to have fun at the expense of marketers peddling “one-size-fits-all” structures…and to me that can be very dangerous!
 
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greghm
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Joined: July 14th, 2002, 3:00 am

Most common IR structured products

May 18th, 2004, 1:00 pm

I think that's a common feature among Buy side people who went through a job as a Sales. They might have a a strategic edge in detecting Sales that are going to be really pushy, other will do this "one size fits all"... are there some laughable stories to tell ?
 
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pobazee
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Joined: September 23rd, 2003, 5:32 pm

Most common IR structured products

May 18th, 2004, 6:10 pm

Greghm:I'm saving all the stories, follies, promises, graveyard market lore, jokes, funnies etc. for my retirement book - "Mr. Marvelous: Dinning with Money Minds."
 
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greghm
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Joined: July 14th, 2002, 3:00 am

Most common IR structured products

May 19th, 2004, 3:43 pm

Pobazee, you re gonna be the Michael Lewis of Quant finance...
 
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Hamilton
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Joined: July 23rd, 2001, 6:25 pm

Most common IR structured products

May 19th, 2004, 4:05 pm

QuoteOriginally posted by: greghmPobazee, you re gonna be the Michael Lewis of Quant finance...Or the next William Hamilton
 
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monkeyA
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Joined: December 4th, 2002, 10:25 am

Most common IR structured products

May 19th, 2004, 5:46 pm

he was a nobody
 
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Hamilton
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Joined: July 23rd, 2001, 6:25 pm

Most common IR structured products

May 19th, 2004, 7:28 pm

QuoteOriginally posted by: monkeyAhe was a nobodyMonkey see, Monkey do.