Structured products
Fixed income investors look to ethical funds – but do they pay?
Of all asset classes, fixed income has been one of the slowest to embrace ethical investment. Thanks in part to the growing influence of sovereign wealth funds, this may be set to change. But for many, lingering questions about whether constraining your…
Credit investors up in arms over lax covenants
Investors are complaining that documentation for high yield bond deals has become increasingly opaque and poorly structured, making it difficult to gauge the level of risk. Will the glut of high yield supply that is set to hit the market over the coming…
Technology provider of the year, Asia – Numerix
For its continued expansion in China and South Korea as well as its established business in Japan, Numerix is the Structured Products Technology Provider of the Year for Asia
Repricing of sovereign debt would be an 'earthquake' for financial markets – chief economist
The chief economist at Independent Strategy, Bob McKee, explains why a repricing of sovereign debt and defaults of advanced economies would be “logical” outcomes in the next stage of the financial crisis.
Special report: China
Special report: China
Repayment fears over China's local government debt
China’s local governments have channelled their debt through off-balance sheet financing vehicles that leave creditors little recourse to repayment in the event of default. Calls to reform this system could result in the formation of a municipal bond…
Tiger or pussycat? The emergence of China's sovereign wealth fund
Ever since its launch in 2007, China Investment Corporation, China’s sovereign wealth fund, has attracted widespread fear and suspicion. But its potential to move markets may have been overplayed.
Iraq woos bond investors as sovereign debt tightens
Iraq is beginning to open its doors again to international investors. With the country needing to raise capital to develop the infrastructure required to exploit its energy reserves, Credit looks at the role bond issuance could play in Iraq’s future.
Distressed debt expert sees opportunities from global recession
The head of special situations at Alcentra says distressed debt investors should head for Europe if the global economy slumps again.
Global economic imbalances may lead to 'bond trap' for investors
US-led efforts to rebalance the global economy are in danger of foundering on Europe’s fiscal retrenchment drive. The result, warn economists, may be a global bond trap, whereby surplus liquidity is channelled into safe government debt, freezing…
Product performance
The products reviewed this month include full principal protection and an accelerated growth product that has no downside risk, alongside a three and a six-month reverse convertible
Market snapshot
The sale of structured products in the US has increased by around 36% in June and July. In the UK, the market in the same two months was characterised by the continuing dominance of capital-at-risk products.
Raiffeisen joins growing Romanian structured products market
Raiffeisen lists its first certificates on the Bucharest Stock Exchange
FVC Custom Indexes
US and UK benchmark indexes declined sharply in June but recovered their losses in July, while the FVC’s global protected index recorded a rise in June
Bank funding blow from ECB repo withdrawal
As the European Central Bank winds down its repo facility, there are fears that traditional avenues of securitisation issuance are still not viable.
Banks face suit over mis-sold subprime loans
Cambridge Place Investment Partners accuses 15 banks of mis-selling.
BNP Paribas enters US retail space via Bank of the West
BNP Paribas is offering market-linked certificates of deposit to US retail investors for the first time through subsidiary Bank of the West
UBS names Bahurel head of equity derivatives sales in Asia
UBS will add Julien Bahurel as head of equity derivative sales in Asia by the end of this year