Structured products
Going it alone
Jyske Bank, based in Denmark, has traditionally distributed products that have been created by large banks. However, after the financial crisis saw consumer confidence in those banks plunge, Jyske has had to step in to operate as both issuer and…
Market snapshot
Tim Mortimer of Future Value Consultants looks at the pricing issues for structured products in different markets and provides his trade of the month
Product performance
Comparing principal-protected, accelerated growth and reverse convertible products with June 2009 strike dates
The callable countdown
JP Morgan has launched a callable countdown constant maturity swap range-accrual certificate of deposit that pays a coupon dependent on the proportion of days the CMS rate is within a 0-6.25% range. The tenor is 15 years and the product benefits from…
UK accumulation
Barclays is offering an accumulator product based on the FTSE 100, with lock-ins for every 15% rise in the index subject to a 60% cap. If the index does not trade above a 115% strike level and the 50% protection barrier is breached, capital is not…
Interest rates call
HSBC is offering US investors a 10-year investment in interest rates that pays 7% in year one and potentially as much in following years. The product is wrapped in a certificate of deposit, but investors may lose out if HSBC exercises its call at five…
Variable annuities: waiting for the next generation
A few years ago European insurers were issuing increasing numbers of guaranteed products that resembled structured notes. What scope is there for this type of business today? By John Ferry
Collateral replacement
At the height of the financial crisis, manufacturers were quick to mitigate mounting counterparty risk concerns by deploying products issued by collateralised special purpose vehicles. But now, as the yield junkies return and retail appetite for…
Wrestling with correlation
The correlation risk inherent in most structured products represents an ongoing headache for manufacturers. While new regulatory proposals would affect how much risk banks keep on their books, market dynamics are at play, especially the rise in…
