In the fourth part of our ‘Easy-Language’ series, we return to the ‘Leverage Products’ category to explore a structured product that works as a clever “anti-shock” portfolio mechanism.

This exact strategy was deployed highly successfully in the context of the early 2000s Tech-Burst: using warrants (a long-term option exposure) on short-term interest rates to cross-hedge equity risk. While trading screens look identical, the Libor to SOFR transition fundamentally altered the US rates market behavior in three ways Back in 1999, the underlying instrument was the Eurodollar future. Today, following the global phase-out of USD Libor in June 2023, the market has transitioned to