Editor's letter

Every product we review will receive a 'riskmap'rating – a score out of five designed to express the level of risk inherent in the product

Since its launch, Structured Products has run several features on ratings for derivatives-based investments. Now we're doing our bit for the development of product ratings.

From this issue on, we will review and rate four products each month from markets across the world. The reviews are compiled by Future Value Consultants (FVC) – an independent, London-based analytics and research consultancy that specialises in the design, pricing, risk management and analysis of structured products. FVC is a well-known name in the UK structured products market, and its 'riskmap' ratings and product scores are accepted as an industry standard in this country.

Every product we review will receive one of these ratings – a score out of five designed to express the level of risk inherent in the product, with one being the least risky, for example. FVC also provides scores for transparency, value and potential returns and by tax category of investors. The reviews will also feature probability tables of product return outcomes based on simulated performances.

Also this month, FVC founder and managing director Tim Mortimer starts his Market snapshot column, featuring a trade of the month and data on current pricing issues. Before establishing FVC in 1999, Tim held senior positions at Paribas, UBS and Zurich Capital Markets.

If you would like to see your firm's products reviewed, send term sheets of current offerings to me, and our editorial panel will choose four products a month in consultation with FVC. Details of requirements can be found at www.structuredproductsonline.com

Speaking of the internet, many of you will have noticed the launch of our new blog, Structured Notes, available at www.structurednotes.co.uk, which will provide us hacks with a new way of analysing market developments. Along with the print magazine, online daily news from SP Extra, editorial analysis at Structured Notes, detailed product reviews and ratings, and an ever-expanding global conference programme, Structured Products looks set to have an exciting 2007. I'd like to wish our valued readers an equally busy and prosperous year ahead.

Paul Lyon

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