The Law Dictionary

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COMPLEX STRUCTURED PRODUCT Definition & Legal Meaning

Definition & Citations:

A CAPITAL MARKETS financing instrument, such as a BOND or NOTE, that contains embedded COMPLEX OPTIONS or COMPLEX SWAPS that alter RISK and return/YIELD characteristics in unique ways. Since complex structured products are highly customized they are often issued on a PRIVATE PLACEMENT basis and tend to feature very limited LIQUIDITY. See also STRUCTURED NOTE.

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