Equity derivatives
Debate is ongoing about the value of hybrid products. A number of dealers have invested significant time and effort into the business, but it is not quite clear what tangible advantage they are gaining from this effort.
Last year, the rationale for setting up hybrid product groups seemed obvious. Low levels of volatility in equities and interest rates forced institutional and retail investors to look for extra yield from structured products. That allowed dealers to bring in new-fangled kickers -
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