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Subprime fall-out

Transparency on charges might miss the point

By Baptiste Aboulian

Published: July 6 2008 17:51 | Last updated: July 6 2008 17:51

Standard & Poor’s latest attempt to bring transparency to the structured products market is likely to fall on stony ground.

The indices provider has recently published a consultative paper setting out an index that, it says, could be a benchmark for retail principal-protected investments. It tested various scenarios in the liquid publicly traded options market to come up with an S&P 500 protected put index, giving “two-thirds of market return at one-third overall risk”.

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