Tempting Australian investors back into structured products
Fixed-term deposits are popular with retail investors in Australia, but could the recent cut in interest rates drive momentum back into yield-enhancement structured products?
Relatively high interest rates in Australia since 2008 have increased the appeal of basic deposit products as banks have been able to offer returns in excess of 6% at a time when equity markets have been trending sideways. As a result, and with risk aversion showing little sign of easing, the country's investor base has turned to cash and defensive assets such as fixed income and high-yielding term deposits. But weaker-than-expected growth in the Australian economy has raised the prospect of
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