When BNP Paribas sold a three-year option linked to one of its proprietary indexes in Asia in March this year, the $20 million deal was remarkable, but not for the usual reasons, like size or structure. It was the fact that it was struck in Korea, where both the end-client, an insurance company, and the bank's partner on the deal, a local securities firm, are based.
Proprietary indexes have a chequered past in places such as Korea, Hong Kong and Indonesia. Post-2008, these indexes were marketed
The week on Risk.net, July 7-13, 2018Receive this by email