Isn't revosave also an ingenuity of the market? Like subprime CDOs or SIVs revosave is "structured" and has little and low intrinsic value but marketed at very expensive price. Indeed an ingenuity, that insurers or the market makers are packaging products into products that are sold at higher prices than its components. It is complicated, in fact more complicated the better that it can fetch higher price, that the ordinary customers have no idea but buy becuase of the company's brand name, NTUC, and of course the pushyness and other tricks of the insurance agents. Will revosave collapse time will tell.
It also comes to mind such fanciful names nowadays with the policies that are being sold. Now I fully understand the strength of the new CEO over the old. Obviously, we have now a very sharp CEO who is able to generate "high" profits with "enhanced" benefits using highly "structured" instruments. I am very happy knowing that all my policies bought in the past are going to enjoy high and enhanced profits thanks to the ingenuity of this new leverage.
Isn't revosave also an ingenuity of the market? Like subprime CDOs or SIVs revosave is "structured" and has little and low intrinsic value but marketed at very expensive price.
ReplyDeleteIndeed an ingenuity, that insurers or the market makers are packaging products into products that are sold at higher prices than its components.
It is complicated, in fact more complicated the better that it can fetch higher price, that the ordinary customers have no idea but buy becuase of the company's brand name, NTUC, and of course the pushyness and other tricks of the insurance agents. Will revosave collapse time will tell.
It also comes to mind such fanciful names nowadays with the policies that are being sold. Now I fully understand the strength of the new CEO over the old. Obviously, we have now a very sharp CEO who is able to generate "high" profits with "enhanced" benefits using highly "structured" instruments. I am very happy knowing that all my policies bought in the past are going to enjoy high and enhanced profits thanks to the ingenuity of this new leverage.
ReplyDeleteThat's a good laugh over the subprime issue.
ReplyDeleteIt brought to mind Aviva's BIG E. It was repackaged to sell to investors but now it can't even sustain itself.
Talk about a BIG waste of time. Had the same amount been invested elsewhere, a much higher return would have been achieved.
Next time another bank try to sell such repackaged product, better be wary.