Fierce competition and active regulation for product providers in Germany

The big squeeze


The competition for market share in the German structured products market has been fierce during 2013 in an environment where the total volume of products outstanding fell from €100 billion at the beginning of the year to €90 billion entering the final quarter. The difficulty in structuring attractive payouts in the face of current low interest rates, combined with the fact that many retail investors missed the recent gains in the country's main Dax index, means few providers believ