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Simple structures

An increase in risk premiums on sovereign debt is giving banks a headache in pricing certain credit-related structured products. Investor appetite for such deals is in evidence, but mainly for simple, unleveraged products. Sophia Morrell reports

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Volatility in the credit markets is hindering the accurate pricing of structured products that are based on a combination of sovereign and corporate credit. An increase in sovereign risk has even prompted one bank to withdraw such a deal. But as Sophia Morrell discovers, certain credit-linked notes are enjoying healthy demand

The structured finance market has suffered more than most during the travails of the past 18 months. Products such as constant proportion debt obligations, which offered

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