A return to structured products?

Structured products have been largely shunned since the collapse of Lehman Brothers last September, but low returns in other asset classes may prompt institutional investors to return to the sector in the year ahead. By Peter Madigan

Those charged with developing and marketing new structured products were, with a few exceptions, left twiddling their thumbs in the months following the collapse of Lehman Brothers last September. The bankruptcy drummed home the fact that a structured product is only as good as the credit quality of the issuer. Those who jumped into the market in early 2008, attracted by the comparatively high returns on Lehman paper (a function of its wider credit spread), found themselves staring at hefty -