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.
In this white paper, Gordon Russell, Global Head of Risk at Broadridge Investment Management Solutions argues that the chances of survival in this new environment will be greater for funds that implement solutions to efficiently and cost-effectively manage data and risk.
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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.
In response to industry fears of a collateral crunch, regulators have revised the proposed rules on margining for uncleared over-the-counter (OTC) derivatives.You can find out more by downloading this white paper here.