Deposit-based structures dominate UK issuance as risk appetite shrinks

Risk appetite
UK investors steer clear of risk

Deposit-based structured products, which offer stable returns with an element of capital protection, have dominated issuance in the UK in the first weeks of 2012, replacing the predominance of growth products last year. The UK market saw a modest increase in structured products issuance in 2011, mostly through FTSE 100-linked deposits and growth plans, according to John Gracey, head of structured products at Merchant Capital in London. Gracey expects issuance to remain stagnant. “The ma