Investopedia

Continue to Site »

Structured Repackaged Asset-Backed Trust Security - STRATS

Filed Under » , ,
Dictionary Says

Definition of 'Structured Repackaged Asset-Backed Trust Security - STRATS'

A derivative product similar to an exchange-traded fund (ETF) or American Depository Receipt (ADR), where the originator buys an asset, sets up a trust and then issues securities to investors. With structured repackaged asset backed trust securities the investors can benefit from the underlying asset's performance. Structured products are those that combine two or more financial instruments, including at least one derivative.
Investopedia Says

Investopedia explains 'Structured Repackaged Asset-Backed Trust Security - STRATS'

Repackaging allows an intermediary to make a profit by acquiring some of the financial assets of a financial institution and repackaging them in a manner that is more appealing to investors. A basket of assets can be placed in a trust which issues shared of equity interest to investors. For example, the STRATS Trust for The Allstate Corporation trades under the ticker symbol GJT and the STRATS for Walmart trades under the ticker symbol GJO.

Articles Of Interest

  1.

    Asset-Backed Commercial Paper Carries High Risk

    Asset-backed commercial paper has characteristics that make it much more risky than traditional commercial paper.

  2. Exchange Traded Notes - An Alternative To ETFs

    ETNs offer yet another way to track an index. Find out what they have to offer, and what's at stake.

  3. An Introduction To Structured Products

    Learn a simple way to bring the benefits of derivatives into your portfolio.

  4. These Financial Products Are Too Complex For The Average Joe

    Structured financial products are so elaborate that investors are unable to assess costs and risk.

  5. Why Your Pension Plan Has Sovereign Debt In It

    One type of security pensions tend to invest in is sovereign debt, or debt issued by a government.

  6. Multi-Asset Funds Or Your Own Mix?

    The underlying concept of mixed funds is very appealing. Discover if you're better off with professional management or creating a mixed fund of your own.

  7. The Best ETFs For Your 401k

    ETFs can be a good alternative to traditional retirement fund options because of their low cost, superior performance and liquidity.

  8. Why You Should Invest In Municipal Bond ETFs

    These versatile instruments have become popular with investors in higher tax brackets and fill a specific niche in the wide selection of fixed-income offerings.

  9. The Best Way To Buy Silver

    Discover whether ETFs or physical bullion is the best way for investors to get exposure to silver.

  10. Inspecting A Country's Debt

    Tensions over just how to handle debt are pitting the rich world against the developing world like never before.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  2. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  3. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  4. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  5. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.

  6. Lease To Own

    An arrangement where an individual enters into a lease agreement with an owner with the inclusion of a clause that typically gives the individual the right, but not the obligation, to purchase the item leased at a predefined price and time.
Trading Center