JPMorgan Chase is offering one. You can buy a six-month note that promises to pay investors annualized interest of 16 percent under certain circumstances. The circumstances depend on the performance of G.E.’s stock. As long as G.E.’s stock stays within a certain range each month for six months — basically not falling more than 30 percent from roughly where it has been — then JPMorgan Chase will pay you at least 1.333 percent per month interest on your investment, or 8 percent for six months, or an annualized rate of 16 percent.
This is not the only structured investment you can buy. The market is around $60 billion a year in the United States, and growing; in Europe is closer to $180 billion, or three times larger; in Asia, it’s closer to $350 billion. Goldman Sachs has created a company called Structured Investment Marketplace and Online Network (or SIMON). SIMON supposedly provides increasing transparency and information for these investments.
Doesn't this sound like the CDOs of The Great Recession?
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