Trading the range


The structured products market often seems to innovate at breakneck speed. When banks managed to convince European retail investors to buy simple principal-protected equity-linked notes in the 1990s, it did not take long for basket products, path-dependent payouts and all manner of exotic option combinations to start appearing in the market.

Similarly, when investors first started taking an interest in plain vanilla inflation-linked notes a few years ago, it may have seemed that the inflation mar