Dual directional products are ‘exceedingly complex’ says US securities research firm

Thirty-five dual directional structured products have been issued so far this year in the US, but research from a securities consulting firm warns against them

Dual directional structured products offer returns whether underlying rises or falls

Dual directional structured products, which are typically aimed at retail investors, are "exceedingly complex" and "tend to be priced at a significant premium to present value", according to a research report from Virginia-based Securities Litigation and Consulting Group (SLCG).

The report also finds that dual directional products with leverage on upside returns have a far lower average value than their unleveraged counterparts. "They are more poorly priced than the more transparent products,"