Structured products

WHAT IS THIS? Structured products are investments that have multiple components. For retail investors, the most common form is a bond plus an option – these tend to be standardised, sold in small tickets and large volumes. Managing the risks of large structured products portfolios is one of the biggest challenges dealers face.

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…

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…

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…

Keeping it in the family

US family offices control possibly the largest concentration of private family wealth in the world, so it is no surprise that creators of structured products are eyeing this space. But with the ultra-rich resembling small institutional investors more…

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