Analysis
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
Product performance
We compare principal-protected, accelerated growth and reverse convertible products with June 2009 strike dates
Exceptions to the rule
Regulators have traditionally seen value-at-risk exceptions as an early warning of weaknesses in bank risk models. However, the financial crisis has shown VAR exceptions cannot be used to predict bank failures or distress.
Unbroken China
The global financial crisis had an indirect but significant impact on Chinese banks, which have had to manage the risks linked to the country’s large credit expansion in 2009. Financial institutions have also learnt useful lessons from the collapse of…
Derivatives onshoring
New rules coming into force in many jurisdictions in Asia are challenging the ability of global financial institutions to operate a hub-and-spoke business model for their derivatives businesses.
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
Product performance
We compare principal-protected, accelerated growth and reverse convertible products with May 2009 strike dates
Beware the breaches
Credit Suisse has produced a two-year booster cert plus securities product that offers access to the full upside of the performance of the iShares Emerging Markets Index Fund. There is a 70% barrier, and a limit to uncapped returns if an upper barrier of
Risking the first 10%
Gilliat Financial Solutions is offering a six-year income product linked to the FTSE 100 that promises a fixed coupon as well as bonus payments, but only if investors are prepared to put 10% of their capital at risk
Emerging versus developed
Duggan Asset Management is offering a three-year-and-11-month simple growth product that plays emerging against developed markets equities. The product is 95% capital protected and incorporates final averaging
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
Product performance
We compare principal-protected, accelerated growth and reverse convertible products with April 2009 strike dates
Big risk in Japan
RBS issued a one-year income product linked to five Japanese stocks in March 2008, paying 3% interest plus a variable capital repayment. Three of the stocks fell through their barriers, putting capital at risk and making for a capital return of only 39%