UK investors eye capital protection as rates rise and volatility falls

As vol goes down investors get more bang for their buck

Inflation, commodities and income are the dominant themes in the UK structured products market for 2011. "This year has got off to a brisk start," says Marc Chamberlain, executive director at Morgan Stanley in London. "Autocalls are not pricing, which may well be due to volatility coming off."

With rates moving higher and volatility falling, capital-protected products are returning to the market.

Morgan Stanley has reissued its FTSE Simple Growth Plan for the first time since 2007. "Capital pro