Rising US rates are boosting the structured products market
Falling interest rates hit structured products hard last year, and as they start to rise they are providing a much-needed boost to the market, says a US distributor.
With interest rates providing a much-needed boost to the US structured products market, Barclays Capital predicts a 25% increase in volumes this year.
The US market was picking up at the start of last year but as interest rates declined, the market "fell off a cliff" says Dayna Kleinman, first vice-president, fixed income and structured products consultant at Robert W Baird in Chicago.
The 100% capital-protected certificates of deposit (CDs) that were so popular because of their Federal Deposit
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