Structured products: the ripple effect

Hedge funds

The structured hedge fund business has grown rapidly since the first major deals were struck in the mid-1990s in Japan. The market services retail, private banking and limited institutional appetite for enhanced returns over traditional equity and bond holdings, while also offering portfolio diversification and, in many cases, capital guarantees. Most major dealers now offer structured hedge fund investment products or hedges to distributors via their derivatives teams. And the market is cur