The lure of liquidity
Huge steps have been taken towards creating a relatively liquid and durable secondary market for structured products. Significant obstacles remain, however, including the market's asymmetry and the arduous task of explaining exactly how products are priced to clients. Matt Cameron reports
Structured products, either inherently or by virtue of the secondary market, are undergoing a transformation. They are becoming actively managed. One way of achieving active management is by altering the underlying derivatives strategy of a product. The other, arguably more consequential, method is by trading products on the secondary market. Active management via the secondary market bestows upon structured products an attribute all retail investors crave - liquidity.
"Liquidity is indispensable
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