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.
Feeling deflated
The consensus is that interest rates are headed for zero in 2009, with even the long end of the curve looking depressingly flat. William Rhode looks at how structured products are likely to function in such an environment - from both an 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
Trimming the tenor
The Hong Kong market is undergoing a massive shift in the type of products that are distributed as investors opt for simple, short-dated, capital-protected investments because of uncertainty about long-term trends. Hang Seng Bank is even offering…
The pause before paradise?
If you think markets are finally at the bottom, this could be the time to start making the switch from cash. You could also plump for credit products in 2009. All that is required is a return of stability, meaning no more horror stories. But how likely…
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
Catching the wave
Dealers are offering a swathe of volatility-linked products in Asia both as risk-reduction and investment tools, generally based on fear gauge, the Vix index. How are these products catching on in the region? Georgina Lee reports
Richardson's rich pickings
After partnering with Credit Suisse earlier this year to sell structured notes, Richardson Partners Financial has found news ways to adapt its offering to high-net-worth clients amid an exceptionally tough financial climate in Canada - and its business…
The ideal copy
A series of hedge fund redemptions in the third quarter of 2008 have alerted investors to just how illiquid these investments can be. Add in the restrictions that some of funds have placed on withdrawing cash, and it is easy to see why structured…
Fuelling an emissions market
The carbon emissions credits market is heating up as investors are increasingly able to tap into the theme via structured products and exchange-traded funds. But how viable is the carbon theme as an underlying and what challenges do structured products…
Lehman restructured
The collapse of Lehman Brothers left billions of dollars of structured notes with unhedged exposures, prompting issuers to scramble for new counterparties to restructure trades. Meanwhile, some structured product providers have offered hope to investors…
The transparency tide
The issue of counterparty risk and how best to convey it to retail investors dominated the agenda at the Structured Products Europe conference. Delegates explored ways of identifying and mitigating risk, while the rise in structured funds and regulation…
Stepping stones
Risk-averse retail investors are shying away from fully regulated sales products that are capital at risk in favour of deposits. But structured products provide a natural stepping stone for Yorkshire Building Society to bridge this gap while delivering…
Editor's letter
Editorial
Mittel European Reflections
Central and eastern Europe is a huge potential market for structured products and exchange-traded funds. Structured Products' first conference in the region explored commodities, foreign exchange and diverse underlyings, but the most pressing issue was…
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
