Jan
21
How Wall Street Finds New Ways to Sell Old, Opaque Products to Retail Investors
ByProprietary indexes spread.
As securities watchdogs crack down on complex investments that promise mom-and-pop investors access to strategies of trading pros, Wall Street is finding a way to sell the same products in places those regulators don’t reach.
The investments, which follow proprietary indexes developed by banks including JPMorgan Chase & Co. and Credit Suisse Group AG, are quietly spreading into more opaque retail markets. Once popular in structured notes, a form of bank debt bundled with derivatives, they are now helping pump up sales of certificates of deposit and insurance annuities. Specialized indexes now underpin more than a fifth of the $13.8 billion market for indexed annuities—investments that target retirees…
How Wall Street Finds New Ways to Sell Old, Opaque Products to Retail Investors
