Merged Spanish savings banks expected to have greater appetite for structured products

Consolidation among Spanish savings banks has temporarily stalled structured products distribution, but many believe larger distribution channels will eventually result from the mergers

Spanish bank mergers will create entities with new ways of creating revenues

Spain's struggling savings banks, known as cajas, are issuing their own paper as they seek funding, rather than distributing paper issued by the large investment banks. Their problems have culminated in mergers to create new, bigger entities, and once these mergers are finalised market participants believe they will have more interest in structured products.

"An advantage to these mergers could be that these new entities need to prove they can be active in the market, and will be aggressively