Hungry for sophistication

Economic crisis in many Latin American countries led investors to seek tailored, principal-protected investments. But improved economic prospects for the region could increase investor appetite for more sophisticated products. Buenos Aires-based Sarfraz Thind provides an overview of recent market trends

While the Latin American investor joined the equity structured product market a little later than in Europe or the US, the market has grown into an extremely valuable source of income for banks over the past four or five years. Specifically, the banks have sought to court the region’s high-net-worth individuals.

“With Latin American clients, the number of zeros involved in the deal means it is never something you are going to ignore,” says Laurence Kaplan, director in the structured products