Structural simplicity
Restoring confidence in structured products is top of equity derivatives dealers' agenda as they move to offer less complex instruments to jittery investors. But the industry faces a long haul to bring business back to levels witnessed in 2007. Jill Wong reports
Retail demand for structured equity products in Hong Kong and Singapore has all but disappeared following the Lehman Brothers minibond debacle and widespread losses from equity accumulators. Private banking clients, meanwhile, are reluctant to look at anything beyond the simplest equity-linked notes (ELNs) as investments. The result is that payoff innovation has taken a back seat in Asia's main equity structured products markets.
"It's a good time to keep it simple," says David Hansson, head of
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