Structured credit products could be more vulnerable to rapid changes in the credit cycle, said the Bank of International Settlements (BIS) last week in its annual report. The BIS also said that if investors incur losses on these products in excess of what they anticipate, it could trigger a repricing of risk across all markets.

"Mortgage and asset-backed securities markets are among the largest, fastest growing segments of global securities markets and in recent years have seen a tremendous increase in the range of new products and securitization techniques," the BIS report said. "However, the performance of many of these new products has yet to be tested in an economic downturn."

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