Non-financial corporate bonds: the future for structured products?

Using non-financial corporate bonds instead of bank bonds to underpin structured products could encourage more investors to consider them, as it would help diversify the counterparty risk within a portfolio, say industry participants

Could corporate bonds represent the future for structured products

An effective way of diversifying a portfolio that contains structured products would be to diversify the counterparty risk away from financial institutions, according to Stephen Black, managing director at recently launched independent wealth management company Tier One Capital, who spoke at the Structured Products UK and Europe conference in London this week. The difficulty at the moment is that the industry does not yet cater for this progression, he said.

"Presently, the zero coupon bond or