Rising rates lead to greater interest in structured products
Trading volumes ‘could increase fivefold’ as a result of short-term rates rise
The increase in short-term interest rates over recent months has been a problem for mortgage holders and businesses hit by the rise in the cost of borrowing. Yet the monetary clouds have had a silver lining for those banks offering structured finance products.
Demand has surged for structured notes linked to foreign exchange. Most banks had not been actively trading these niche products since the
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