Scrambling for yield
The rebound of credit markets in 2009 enabled product providers to decrease risk as well as offer higher yields to investors in the Americas, using techniques such as multipliers or digital payoffs. The result is an increase in the number of deals, especially over the last six months. Richard Jory reports from the Structured Products Americas conference in Miami
The demand for certificate of deposit-backed structured products in the US will dwindle only when the increased, US$250,000 limit put in place by the Federal Depositary Insurance Corp in the depth of the financial crisis is reviewed. "You can't assume the FDIC limit will remain high," said Dayna Kleinman, first vice-president, fixed income and structured products consultant at Robert W Baird, speaking on a roundtable at the Structured Products Americas conference, held in Miami on May 6 & 7.
Lon
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