Algos to the rescue

Shifting global markets have hindered the carry trade, a strategy to which many rules-based foreign exchange structured products have been linked. But dealers continue to expend effort in the area - and are readying the next generation of long/short algorithmic offerings. Mark Pengelly reports

Foreign exchange structurers have had a good year compared with their peers in other asset classes. Triggered by bumper delinquencies among US subprime mortgages, the credit crisis that began 12 months ago has given severe headaches to colleagues elsewhere - and in some cases, notices of redundancy.

"These are difficult times for classic rates derivatives," says Martin Hartmann, London-based head of equity and fixed income, currencies and commodities structuring at Dresdner Kleinwort. In