The “Financial wizardry” series is running in the FT and will discuss financial products that are generating debate and explain how they operate.
Gone are the days when you only needed to know about stocks, bonds and cash. With derivative instruments allowing hedge funds and proprietary traders to devise ever more sophisticated cross-asset class strategies, the FT will guide you through the latest advances in today’s financial wizardry.
In a dramatically transformed investment world, ever greater innovations not only spread the risk but also drive change. Derivatives and structured instruments have evolved particularly quickly in the worlds of credit, equities and commodities.
Calpers is leading the way for investment managers as it seeks to capitalise on a new strategy allowing it to harness, to some extent, the power of short selling.
UBS this month will launch an instrument that claims to be the world’s first sharia-compliant investment product linked to commodity prices. And they are convinced that demand should be hot – particularly among powerful Middle East investors, who have historically placed much of their money in Switzerland.