Participatory notes under scrutiny as they reach peak

Participation peaks

Participatory notes, more commonly know as p-notes, and other access derivatives instruments, such as swaps, have come in for a fair amount of scrutiny by regulators during the past five years. These over-the-counter instruments are highly lucrative for international dealers with onshore licences in restricted markets, which issue delta one notes giving investors exposure to capital gains and dividends. Swaps are also a popular way to access onshore markets, particularly with hedge funds, where