Structured products offered to the US market are becoming more diverse in terms of the assets they track, but a harsh structuring environment is causing providers to extend maturities.
US issuance shifts from domestic to international equities, while the participation rate for the latest Goldman Sachs offering hits three times the returns of the MSCI EAFE Index.
Real estate is gaining popularity as an underlying, with a handful of products tracking iShares Dow Jones Real Estate Index fund in recent issuances.
This three-part series looks at the various factors that firms across the ecosystem of global FX markets - from the buy-side, the sell-side, and the supporting community of technology vendors and service providers - should consider in order to, not just survive, but to thrive in this dynamic and ever-changing environment.
More Clare Dickinson articles
While US equities continue to dominate the issuance, products have diversified into small and mid-cap indexes.
US equities were the major theme in index-linked issuance at the end of last week, although diversification away from the S&P 500 was on offer from some providers.
Barclays has listed its first iPath ETN in Italy, hoping to add to the success of its volatility-linked ETNs
Gage Olcott has joined Citi in the US to help build up its third-party distribution efforts
While volumes have been healthy in the US market this week, maturity dates are being extended, but there is still innovation to be seen
The introduction of several new European Union laws covering financial investments could prohibit sales of some products and push up costs
Royal Bank of Canada is the only player in the issuance with its reverse convertibles, a handful of which are based on natural resources.
As pre-election battles focus on the Bush administration's tax cuts and other economic issues, uncertainty regarding future tax levels is persuading many investors to remain in cash.
The latest structured products released in the US public market include a divergence of exposures, split between reverse convertibles and accelerated growth. Underlyings are dominated by US and emer...
Royal Bank of Scotland dominates the lastest US public issuance with its reverse convertibles, while precious metals hold their position as a popular underlying.
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