%0 Journal Article %A Harry M. Kat %T Equity-Linked Savings—Part I %B A New Product Range for Retail Investors %D 2001 %R 10.3905/jai.2001.318985 %J The Journal of Alternative Investments %P 29-36 %V 3 %N 4 %X In this first part of a two-part article, the author reports on a new class of derivative products that he refers to as equity-linked savings products. Equity-linked savings products require investors to pay periodic installments in return for a predefined equity-linked payoff at maturity. The structuring, hedging, pricing and marketing of a variety of equity-linked savings products are discussed in detail, paying particular attention to the case of The Netherlands where equity-linked savings products are currently very popular with an estimated USD 2 billion issued over the last three years. Reverse engineering of a recent issue shows that the profit margins that product providers may be able to achieve on equity-linked savings products are extremely high. %U https://jai.pm-research.com/content/iijaltinv/3/4/29.full.pdf