Constant Proportion Portfolio Insurance (CPPI) has had a long history and is a strategy that has elements in common with both structured products and managed funds.

The idea of CPPI originally came out of portfolio insurance, popular in the 1980s when early program trading algorithms moved an equity portfolio steadily into cash when markets declined to restrict losses. Almost all CPPI investments select a single risky asset such as a fund or portfolio and a risk-free asset such as cash or high grade short-dated bonds CPPI products have made something of a comeback in 2024. According to data from SRP, issuance volumes have already exceeded the total for

Continue reading with a subscription to the SRP market intelligence platform.

Request Demo

Already a subscriber? Login