Article on new derivative Citi wants to offer
To simplify this: it's bad. As I understand it, the only way for this thing to perform well would be for some entity to suffer great losses in the financial markets. Then, someone has to fork over cash equivalent to those loses. No one seems to know who pays for it, but someone has to get paid. When the financial markets suffer great losses, and institutional investors are owed large sums of money, guess who they'll look to to pay for it? I'll give you one guess.
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