Structured products
Commodity structured products issuance fails to pick up, Barclays Capital
Commodity-linked structured and exchange traded products (ETPs) have suffered in the second quarter of 2009 as inflows into the investments have slowed, according to Barclays Capital.
US Wrap: Lively market focuses on energy and financials
The US market was showing convincing signs of life yesterday, with an impressive spread of 28 products launched by eight providers. The days of heaviest issuance have been dominated by reverse convertibles, but the structure only made up half of…
UK Wrap: Emerging Markets and bonds appear as underlyings
MSS has launched its first structured product in the UK market, offering a 100% capital protection. The six-year investment gives 100% participation in an equally-weighted basket consisting of four underlyings - subject to a maximum return of 45% growth.
Updated: Investec shares the wealth with income increase
Investec will increase the return on its five-year Capital Guaranteed FTSE 100 Income Plan 2 by 40 basis points due to changing market conditions.
Negative repos distort dividend hedging strategies
Abnormally low repurchase rates are forcing banks to hedge their dividend exposures with swaps instead of forwards.
Credit starts to flow, but more defaults ahead
Although credit availability has improved and lending costs have dropped in the UK, the rise in defaults is set to continue, according to the Bank of England's latest survey of the lending markets.
Barclays launches latest guaranteed deposit accounts
Barclays Capital, the investment bank division of Barclays Bank, has launched two more deposit accounts, as part of its structured deposit series for offshore bonds. The three-year guaranteed digital deposit account and the five-year guaranteed FTSE 100…
US Wrap: BofA looks to China for growth prospects
Bank of America has launched an accelerated growth note linked to the FTSE/Xinhua China 25 Index. The note lasts two years and pays 200% participation in the index up to a cap of 158.6%. It also incorporates a downside buffer of 10%.
CDS: Spreads continue to narrow on positive sentiment
Credit default swap 5-year mid-levels for structured products issuers (July 1)
Finra scrutinises muni-bond market; US Treasury creates Consumer Financial Protection Agency
The US Financial Industry Regulatory Authority (Finra) has launched an investigation into financial institutions' underwriting derivatives contracts used by US municipals to finance debt at lower costs.
Difference of opinion emerges on CDS fixed coupons in Europe
European credit derivatives traders remain divided on the number of fixed coupons that should be used for the trading of credit default swaps (CDS), just two weeks after the market was supposed to have switched to using only four standardised coupons.
CMBS re-Remics could make Talf obsolete
A wave of downgrades to highly rated commercial mortgage-backed securities (CMBS) is threatening plans by the US Federal Reserve to rehabilitate the market for existing deals. But a recent trend towards restructuring the transactions could render the…
Exelon increases NRG offer
Exelon Corporation has increased its offer to acquire all of the outstanding NRG common stock by 12.4%.
Russia forges ahead with power market liberalisation
The freely-traded portion of the electricity market in Russia was increased from 30% to 50% on July 1. The rise is in line with the state's plans to achieve 100% free pricing by 2011 and sends a positive signal to the market that it will follow through…
Progress slow on standards for Islamic derivatives, AAOIFI chief warns
Concerns over the nature and use of derivatives are hindering the development of a standardised agreement for sharia-compliant contracts, said Mohamad Nedal Alchaar, secretary-general of the Accounting and Auditing Organisation for Islamic Financial…
Editor's letter
This issue marks the fifth anniversary of Structured Products magazine. To commemorate this landmark, we have looked back over every issue since our launch and constructed a timeline featuring some of the most interesting stories and events, as well as…
Nordic horizons
Markets in the Nordic region have been far from immune from the troubles that have hit structured products across Europe. But speakers and delegates at the Structured Products Nordic Region conference spoke of light on the horizon - despite the pressing…
US Wrap: Tentative reverse convertible issuance from Citi
Citi issued two reverse convertible products in the US market yesterday in a cautious offering of the riskier structures. The notes link to the stock of either JP Morgan or Research in Motion, which makes BlackBerry devices, lasting one year and six…
Dow Jones launches Islamic index for sharia ETF
Dow Jones has launched a new Islamic index, which has been simultaneously licensed to an exchange-traded fund (ETF) provider in the US. The Dow Jones Islamic Market International Titans 100 Index will track 100 companies outside the US which have passed…
End of the equity
Strategic Asset Allocation
Eastern promise
ALM