SLCG Issues New Structured Products Report

WASHINGTON, Nov. 5, 2013 /PRNewswire/ -- Securities Litigation and Consulting Group, Inc. ("SLCG") has issued a study of returns actually realized by investors in retail structured products, "Ex-post Structured Product Returns: Index Methodology and Analysis" by Tim Dulaney, Tim Husson and Mike Yan, Senior Financial Economists, Geng Deng, Director of Research and Craig McCann, Principal. This is SLCG's 11^th working paper in the last seven years evaluating structured products.

According to Dr. Geng the SLCG study complements the existing literature which finds retail structured products are worth significantly less than their initial offering prices. He explains that investors who purchased these structured products realized returns which were highly correlated with stock returns during the same holding periods but were lower by amounts consistent with the purchase date mispricing found in earlier studies.

Dr. Yan stated that not only did the structured products compare poorly to the stock market on average but that 75% of the time the individual structured products' returns were lower than returns investors would have earned putting the same amount in the stock market.

The SLCG study valued over 18,000 retail structured products including reverse convertibles issued between 2007 and 2013 each day during their terms to derive return indices.  Dr. Dulaney and Dr. Husson pointed out that the complexity of these products makes valuing the products too difficult for most investors, a problem lessened by the SEC's recent requirement that issuers report an estimated issue date value for structured products. They argue the most recent SLCG demonstrates that investors who buy structured products are harmed by the amount of the purchase date mispricing found by other published studies.

This study and other working papers are available at http://www.slcg.com/research.php.

Securities Litigation and Consulting Group, Inc. ("SLCG") is a financial economics consulting firm based outside of Washington, DC. SLCG provides consulting services and expert witnesses to law firms, publicly-traded corporations, banks, brokerage firms and individuals involved in complex litigation throughout the United States. SLCG's staff includes PhD, MA and BA level professionals with academic, industry and government experience. Its experts have testified in state and federal court and in various arbitration forums.

For further information about SLCG or its research, please contact Dr. Craig McCann at 703-246-9381, [email protected] or visit us at http://www.slcg.com.

SOURCE Securities Litigation and Consulting Group, Inc.