Emerging asset classes

Interest in emerging market structured products has surged as investors look further afield for yields. A wide range of synthetic collateralised debt obligations and constant proportion portfolio insurance products has been launched, and dealers reckon the market is set for further growth this year. By Rachel Wolcott

Emerging market structured products have traditionally had a discrete base of end-users, but as investors continue to seek out new sources of yield, the asset class's popularity has surged.

Last year witnessed a dramatic increase in the number of synthetic emerging market collateralised debt obligations (CDOs), with several innovative transactions launched into the market. Standard & Poor's rated 21 synthetic emerging markets CDOs in 2005, compared with only seven transactions over the previous