A ripening market
Market dynamics and the chequered history of structured investments in South Africa have recently favoured vanilla products featuring capital protection. But some local issuers are gaining traction with more sophisticated offerings. John Ferry reports
Structured product issuers have had a lot to contend with in the past two years. From the middle of 2007, burgeoning losses on US subprime mortgage portfolios caused mayhem for investors in collateralised debt obligations, dimming investor enthusiasm for complex products generally. Then, in September 2008, the demise of Lehman Brothers provoked a fresh awareness of the counterparty and liquidity risks involved in many derivatives and structured products.
Making things worse, global equity
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