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Glossary

From A to Z, discover clear and concise explanations of key terms, empowering you to make informed decisions in the dynamic world of finance with our comprehensive glossary.

It is difficult to get a standard definition for what is a bespoke investment vehicle which employs derivatives to create a certain risk-reward profile designed to achieve a specific set of objectives. "Structured products" generally work by using a traditional security, such as an investment-grade bond, and replacing the usual payment features such as periodic coupons and final principal with non-traditional payoffs derived from the performance of one or more underlying assets.