Trade of the month: the best structures for low volatility and low interest rates

Trade of the month: the best structures for low volatility and low interest rates

Stone on Sand

Volatility in most equity indexes has been comparatively low over the past two years, especially compared to the levels seen during the onset of the financial crisis. This has had a dramatic effect on structured product design. In this issue, we look at which products are best to buy when volatility is low. Next month, we will examine how product selection changes when volatility levels rise again.

Structured products comprise a bond and an option, and both need to be considered when constructin

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