Boom time for structured products?

Implied volatility on equity derivatives has fallen sharply, making options cheaper and presenting new opportunities for structuring desks. John Ferry and Felix Haddow-Allen review some of the trends and examine the latest products to hit the market

To be ahead of the game in the European market for structured retail products – most of which are equity-linked – bankers must constantly come up with new ideas that make investors feel they might beat the cash markets. The challenge at the moment, say structurers, is to create products that take advantage of current low implied volatilities on equity derivatives.

“Volatility is low, and that creates very good opportunities for us,” says Paris-based Bernard Desforges, global head of sales and