Retail structured products pose systemic risk, concludes report
A report that warns of systemic risk arising from the increased ‘retailisation’ of structured products misses the point, say industry participants
A recent report from the European Systemic Risk Board (ESRB) has concluded that high volumes of structured products sales to retail investors could transmit systemic risks to the financial sector in European countries whose banks are highly reliant on structured products for funding.
However, industry participants have disparaged the findings, claiming the study needs to encompass all retail financial products.
Systemic Risk due to Retailisation?, co-authored by researchers Oliver Burkart and
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