Alan Alanson did a good job explaining the product last week . One point that has not been raised by the SCMP, however, is, if these products have prospectuses investors claim they don't understand, why do they still buy them? Some articles depict these products almost like scams, but I believe some of the earlier series of these instruments did mature at par and paid good rates. The SCMP needs to do more qualitative reporting on this issue rather than egg on the mob.
Fredric Teng
Thanks for exposing the truth behind CDS and derivative products. These instruments should never have been sold in the retail market . Those responsible for approving such sales should be tried for exploiting customers' ignorance and inadequate explanation of the risks to customers.
Charles Chan
