Counting on Kotak
The structured products market in India had little exposure to Lehman Brothers but the US bank's collapse helped to dent retail demand due to newly perceived credit risks. Kotak Mahindra Bank has responded by distributing short tenor trades with minimum fixed coupons. Now it is aiming to capture new retail clients by launching structured notes for insurance distribution channels. Matt Cameron reports
India's structured products market started to get noticed in 2005 and has evolved fairly rapidly ever since. Constant proportion portfolio insurance and dynamic portfolio insurance (DPI) products dominated until 2006, when quantitative strategies such as synthetic option hedging were developed off mutual fund platforms. That same year, equity-linked structured notes hit the scene and have been the most popular structured product vehicle since. However, last year, which saw the emergence of the
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