Autocallables thrive on higher volatility
The recent intensification of market volatility has been the catalyst for the plethora of autocallable structured products that have come to market over the past few months. Prior to the volatility, autocallable structures were burdensome to construct because of the difficulty in providing growth above that of low interest rates. However, market conditions over the past four to six weeks have been conducive to launching autocallable products, which are considered a competitive alternative.
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