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Structured Enhanced Returns Trust (STEER)
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A mechanism designed to permit an institutional investor to enter into a swap indirectly or to obtain indirect participation in an instrument that it might not be able to acquire directly. An intermediary organization (the 'Trust') purchases an instrument to serve as the basis for a swap and the return on that instrument is swapped with a third party to provide the exposure the investor seeks. The STEER structure is more cumbersome and generally more costly than the simple purchase of a structured note with appropriate embedded return characteristics.
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Glossary *
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