Comparing principal-protected, accelerated growth and reverse convertible products with June 2009 strike dates
Tim Mortimer of Future Value Consultants looks at the pricing issues for structured products in different markets and provides his trade of the month
Asian economies have suffered less from the global financial downturn than they did during the regional crisis of 1997. Risk levels are now lower, while the money that has been accumulated after more than 10 years of extraordinary wealth creation is back
Over HK$1 billion ($129 million) of accumulator products was traded on Wednesday June 3 in Hong Kong, the largest single-day volume for more than 18 months, say dealers.
Restoring confidence in structured products is top of equity derivatives dealers' agenda as they move to offer less complex instruments to jittery investors. But the industry faces a long haul to bring business back to levels witnessed in 2007. Jill Wong...
Structured equity products marketed in Europe present considerable risk management challenges. The author shows the danger of using naive model-based approaches to price and hedge them.