Before the monolines ran into trouble with exposure to credit derivatives and structured products in late 2007, they enjoyed a robust business insuring municipal debt.

FORBES: Magazine Article

We estimate that the Yield on Fixed-Income Trading Securities fell from 5% in 2005 to 2.8% in 2007, with the company suffering losses on structured credit products during the subprime crisis. in addition to fall in volumes and liquidity during the global economic downturn.

FORBES: Citi Shares Could Swirl Down The Drain As Fixed-Income Revenue Withers

The trouble is that credit derivatives and structured-finance products are not equities, and when events arise that divide the sheep from the goats ie, the interests of shareholders from the interests of bondholders investors who think they are the same thing get caught out as they are now.

ECONOMIST: Buttonwood

At MDE, we have developed a series of strategies that use ETFs and exchange traded options to sculpt risk return payoffs similar to those offered by banks structured products, but without any bank credit risk.

FORBES: How European Bank Woes Could Wreak Havoc On A Portfolio

Continued pressure on its capital levels, however, because of its exposure to rising consumer credit costs, leveraged corporate loans, off-balance sheet conduits and structured products, will force him to seek new capital sooner rather than later.

FORBES: Begging Bankers

Structured products sound appealing at first , but they are inextricably tied to the credit risk of the bank issuing the note.

FORBES: Rethinking Long-Only Equity