Structured Products Come of Age, Overcoming a Difficult Past

They might have caught plenty of flack in the wake of the last recession, but structured financial products are not going anywhere. The ability to aggregate and slice up primary financial instruments and turn them into new vehicles for investment is simply too valuable, even if some mistakes have been made along the way. With a recent history that was less than entirely illustrious, the finance industry has learned some lessons and structured products have matured as a result.


Evidence of this process of maturation can be seen in a number of ways. For one thing, today’s structured products tend to emphasize transparency to a much greater degree than those of a decade ago, giving investors the ability to truly understand what they are buying into instead of trying to sway them with overly inflated promises. At the same time, investors have become more comfortable with what it means to take a position in a structured product, with advisers also doing their best to educate and inform. Taken together, these developments mean that structured product investment decisions today tend to be of a much better motivated and clear-eyed kind than was the norm even a few years back.

The tools used to sell, trade, and analyze structured products have matured as well, lending further substance and resilience to the trade in this kind of financial instrument. Companies like Freedom Mortgage today seek to make it as easy as possible for all involved in a given deal to really understand, at a deep level, what is involved and to appropriately assess their risks and likely returns.

Toward that end, the Freedom Mortgage Structured Products Group offers a comprehensive dashboard that comprehends the whole range of what dealers in such instruments will typically need to do and know. By making use of offerings like that of the Freedom SPG, those responsible for selling structured products to others can be assured of living up to their various duties and obligations in the process.

Between the efforts of companies like Freedom Mortgage and other positive developments in the industry, it has become clear that a sort of coming of age is underway. While they certainly acquired something of a taint in the eyes of the general public some years back, the fact is that structured products are simply too valuable to abandon because of a few mistakes. With greater transparency and more powerful tools for handling and analyzing them, it seems likely that such investments will become mainstays for many in the industry.


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