All shook up
Counterparty credit concerns have been brought to the fore following the collapse of Lehman Brothers, a major issuer of structured notes. Dealers say clients will look more than ever at the credit risk of the issuer. How will this change the dynamics of the structured products market? By John Ferry
The kaleidoscope has been shaken and the pieces of the structured products market are still in flux. Where those pieces fall, and how the market will look in future, has still to be determined. One thing is certain though: henceforth, investors in structured notes will be much more conscious of the risk of default of the institution issuing the product.
Not so long ago, a potential buyer of a structured note might have looked at the front page of a marketing brochure, seen the words 'principal
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