Structured products
ETFs still flying high
Exchange traded funds have become established as popular investment tools. There are still challenges ahead, but there is no doubt of the growing importance of ETFs to investors. Margie Lindsay examines the future prospects for these vehicles.
What is on offer
ETFs possess characteristics that make them an alternative to futures and portfolios of shares for investors who are seeking to gain or reduce country, regional, sector and style as well as fixed-income and commodity exposure.
Convertible bonds issuance set to grow in second-half 2009
Investment rally in equities and credit keeps up momentum as investors benefit
Safety advice
Feature
Rays of hope
Structured products
PPIP blip
Mortgage-backed securities purchases will begin in August under the US Treasury's Public-Private Investment Program. But analysts say holders of the paper may be unwilling to part with their toxic assets at any price. Peter Madigan reports
Back to repack
Despite the flak off-balance-sheet vehicles have received since the onset of the financial crisis, dealers report increased use of special-purpose vehicles by investors looking to repackage assets. Why are investors looking to these repackaging vehicles…
US Wrap: Market banks on S&P 500 growth
The US market has turned back to S&P 500-linked products, with accelerated growth structures linked to the index making up half of new issuance yesterday. Principal protected and autocallable structures were also launched on the index.
US Wrap: Citi offers up two reverse convertible trades
Citi has joined in the slow but steady trickle of reverse convertibles coming into the US market. The bank has issued two notes, one offering exposure to the stock of mining company Vale, and the other to General Electric (GE). The structures are more…
CDS: Spreads move in both directions across the regions
Credit default swap 5-year mid-levels for structured products issuers (Wednesday July 29)
US Wrap: ABN Amro continues slow trickle of reverse convertibles
ABN Amro is continuing its slow and steady release of reverse convertible notes into the US market, launching a structure linked to General Electric stock. It pays an annualised rate of 9%, with a barrier of 70%. If the stock falls below this barrier and…
Ice Clear Europe launches CDS clearing
Ice Clear Europe, the facility set up by Atlanta-based central counterparty (CCP) IntercontinentalExchange (Ice) for the clearing of European credit default swaps (CDS), has obtained regulatory approval and started clearing operations.
CDS: Spreads widen again after run of tightening
Credit default swap 5-year mid-levels for structured products issuers
US Wrap: Morgan Stanley offers Brazil through Exportfinans
Morgan Stanley has launched a new note offering exposure to the iShares MSCI Brazil Index fund. The external credit of Eksportfinans has been used to package the six-month trade, which gives an annualised coupon of 11-15% provided that the fund stays…
Credit Suisse builds up commodity indexing business with three hires
Credit Suisse has made three new hires in its commodities business, including Dan Raab, who formerly looked after the global development of American International Group's (AIG) commodity index. The bank has tapped Merrill Lynch for the remaining hires,…
Lack of liquidity means a comeback for vol swaps
Dynamic replication of the payoff of volatility swaps on single stocks in illiquid markets is cheaper and easier than replicating variance swaps payoffs, dealers say.
Spanish rules cushioned banks from the crisis, says top regulator
In an exclusive interview with Risk , José María Roldán, director-general of banking regulation at the Banco de España, explains how a unique regulatory framework has led Spanish banks to adopt prudent trading and risk management processes that paid off…
Source links to new Dow Jones long/short index
Source has launched 18 exchange-traded funds linked to the Dow Jones Stoxx 600 Optimised Super Sector index range. The index range was created by the ETF provider and DJ and represents a new generation of funds created to deliver exposure to improved…
CDS: Narrowing continues across issuers
Credit default swap 5-year mid-levels for structured products issuers
UK Wrap: Cater Allen lone presence with double digit headline rate
Cater Allen Private Bank was the only issuer with a product in the UK market last week, offering a headline rate of 37% for its FTSE-linked product. The plan comes with two maturity options - either three and three quarter years or five-and-a-half years…
US Wrap: New stocks on the reverse convertible menu
Five new reverse convertibles have been released into the US market, offering exposure to three stocks absent from the space for at least a year. The new underlyings include equity from energy and credit companies.
Eurex CDS clearing solution to start on July 30
Eurex will begin clearing European index and single-name credit default swaps (CDS) as of July 30, the exchange said today.
US Wrap: JP Morgan offers European growth with downside gearing
JP Morgan has launched a new accelerated growth note linked to the DJ Eurostoxx 50. The note offers 200% participation in the index over six months, with 111.11% participation in downside losses. Upside returns are capped at 10%.