New dealers, new products in credit investment market...

Two more dealers have created products for the nascent credit portfolio investment market. JP Morgan Chase launched its European Credit Index-linked Security (JECI) – a five-year product backed by credit default swaps – in March. Then last month, Deutsche Bank launched a fund that indirectly uses over-the-counter derivatives to replicate the performance of a basket of European credit indexes.

Cash bond-backed products aren’t necessarily the optimal structure for Europe, claims Greg Batey,