UK Wrap: Vanilla repeats rule the roost
Among the few products launched in the UK during the past two weeks, the popularity of the FTSE 100 is continuing as investors remain nervous
Capital guarantees in the UK market have been scarce recently. The FTSE 100 has been extremely popular and the majority of products issued in the second half of June were subject to capital gains tax (CGT) - many were repeats of tried-and-tested structures.
"While structured products work well in non-vanilla asset classes, the vast majority of the population are still not ready for exotic options and don't want to venture off the straight and narrow - the FTSE is as vanilla as you can get," says
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