Q: In most of the offerings of Bank Structured Note offerings, this line appears..
The Bank may benefit from the difference between the amount it is obligated to pay under the Notes, net of related expenses, and the returns it may generate in hedging such obligations.
I believe this implies that any options,dollar hedges,derivatives ,futures, EFT'S or derivatives thereof,long and shorts positions of any of these...that the bank would most likely be the other side of any trades within these notes.
Question...It seems that the bank can and will dictate the outcome of these risky things thru related expenses.(.ie the bank deals the cards then plays the hand) ...is the deck not stacked against the retail investor of such so called investment instruments?
The Bank may benefit from the difference between the amount it is obligated to pay under the Notes, net of related expenses, and the returns it may generate in hedging such obligations.
I believe this implies that any options,dollar hedges,derivatives ,futures, EFT'S or derivatives thereof,long and shorts positions of any of these...that the bank would most likely be the other side of any trades within these notes.
Question...It seems that the bank can and will dictate the outcome of these risky things thru related expenses.(.ie the bank deals the cards then plays the hand) ...is the deck not stacked against the retail investor of such so called investment instruments?