What's the hottest derivatives product this year? CPPI structures.

Call 2006 the year of Constant Proportion Portfolio Insurance derivatives.
Looking for a hot structure these days û consider derivatives designed around constant proportion portfolio insurance CPPI, which offer multiple credit strategies, are actively managed and often principal protected.

Most people think of using CPPI in equities û but it is becoming increasingly popular to employ CPPI with other underlyings to create new structured products. Increasingly there have been a large number of structures linked to fixed income, hedge funds, commodities, credits and foreign exchange to boost yield and to provide portfolio diversification to investors.

Right now, SociTtT GTnTrale Corporate Investment Banking, Calyon Corporate and Investment Bank, and ABN AMRNO are all offering such products.

Credit based CPPI structures provide clients with...
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