German providers battle for market share

Begging to differentiate

German providers are struggling to stand out from the crowd

The collapse of Lehman Brothers in September 2008 still casts a shadow over the German structured products market, where cautious investors are looking for simple and transparent products from trusted providers.

Mass retail investors are mostly buying products generating a high coupon, with full capital protection as long as the underlying stock or index does not take a big tumble of 50% or more. This desire for steady returns during a stagnating or slightly rising market has characterised 2010,