Capital-protected notes surge after US rate hikes

Higher cost of borrowing and equity selloffs revive old favourite of Asia’s structured products market

Investors in Asia have piled billions of dollars into capital-protected notes this year, with rising interest rates and the end of a global equity bull run helping to revive interest in the products.

Capital-protected notes were a staple of Asia’s structured products market but went out of favour when US interest rates fell to record lows during the pandemic. With rates now rising as part of the Federal Reserve’s war on inflation, dealers say the products are back on the menu.

Since the