Myth 196 - Toxic or not Toxic
The minibond and high notes case is still unsolved and the general impression is that they are toxic, or this is what they are called. But the only people using this term are the critiques and those badly affected by them. The media conveniently used the term as a reflection of the general sentiment. But are they toxic? Till today, the creators and issuers of these products have never admitted that they are toxic and not been charged. Selling toxic products must be a criminal act as there must be more dangerous than just drug abuses And the financial institutions selling them too have never admit this new status. Neither have the regulators. The official view, if I am not mistaken, is that they are just high risk financial products offering a relatively higher return. They are perfectly legitimate financial products that can be marketed to the investors. And we are hearing nuances from financial institutions that new products of similar nature may still be offered some time in the future. So, are these products toxic? Officially and legally theyare not. Or else all the parties would have been dragged to the courts for a criminal act.