Revenue Protection

Revenue protection often refers to strategies to safeguard a company's income against fluctuations and losses. An insightful discussion on this topic is provided by Bruce Bond, who explains defined income products on the Animal Spirits Podcast.

In the episode, Bond distinguishes between buffers and barriers within these products. A buffer shields investors from losses up to a certain percentage (e.g., 9%), meaning losses within this range are absorbed by the product. In contrast, a barrier offers protection only after a specific threshold is crossed (e.g., 10%), providing a different kind of safety net. These mechanisms are designed to help maintain a certain level of revenue by mitigating potential losses from market downturns, ensuring some degree of financial stability for investors 1.

This kind of product emphasizes the importance of understanding market trends and the associated risks, making them valuable tools in revenue protection strategies.