Risk Italia 2003: Italian covered warrants market will recover

The Italian covered warrants market will recover, despite recent falling volumes, said Marco Montanari, head of the Italian covered warrants market at SG, speaking today at Risk 's inaugural Risk Italia conference in Milan.

After an initial boom in covered warrants since their launch around five years ago, the market has seen a relative lull in volumes over the last year. But Montanari said this does not indicate the down phase of a typical product life cycle.

Demand in the covered warrants market is partly dependent on stock market performance. “Trades on covered warrants are on a three-to-five ratio with the stock market, and now the market is bearish, retail investors have disappeared,” he said. “But the covered