Structured products
AIFM could boost alternative structured pay-off market
The European Union's Alternative Investment Fund Management Directive, the proposed new set of rules for European hedge funds and private equity industries, could adversely boost the structured products market. John Ferry reports
Accelerated returns
Morgan Stanley is offering the potential of accelerated returns with an investment in a six-year FTSE 100-linked growth product. The maximum payout is 80% of the initial investment, although capital is at risk
Fast Asian kickout
UBS recently offered investors in Hong Kong the opportunity to invest against the iShares FTSE/Xinhua A50 China Tracker Fund. Capital would have been at risk had the three-month product not kicked out after the first month
Retrospective: Avoiding the barriers
This JP Morgan product from November 2008 linked to a basket of four Asian indexes and promised a 2.05% quarterly income payment. In the event of a kickout, however, capital was placed at risk and the amount returned to investors would depend on the…
Retrospective: A simple plan
Barclays Bank issued a straightforward minimum return product just before the financial crisis, linked to the performance of the FTSE 100 index. Ensuing volatility and widening CDS spreads show why such products are rare in today’s markets
Product performance
Comparing principal-protected, accelerated growth and reverse convertible products with August 2009 strike dates
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
Banca Fideuram focuses on clarity
Tightening spreads are making it more difficult for banks to factor protection into their products and although the market is stabilising, having protection and products they understand is still an important factor for Banca Fideuram’s customers. Clare…
Strategic thinking
Banks and index providers have been quick to colonise the investment space vacated by stressed hedge funds after transparency became a byword for popularity. With both now offering proprietary dynamic strategies and promising alpha returns, will they end…
ETFs step into the spotlight
As concerns over counterparty risk continue to drive inflows into exchange-traded funds, Richard Jory asks some of the market’s leading practitioners to offer their thoughts on how an increasingly attractive investment market looks set to develop
Trading in the open
The development of the trading market for exchange-traded funds in Europe will depend on improvements in the reporting of off-exchange activity, though the wait for European legislation will be a long one. Further benefits would result from greater…
