US certificates of deposit losing their shine in testing times for capital protection

With capital protection almost impossible to structure with attractive terms, US investors are being lured away from the safety of certificates of deposit by structured notes that look a little more tempting. By Hannah Collins

broken-heart-chains

US industry participants are optimistic that structured notes will make a significant come-back this year, driven primarily by a low interest-rate environment that is making it very difficult to structure capital-protected (including certificates of deposit (CD)-based) products with attractive returns.

In a higher-rate environment, we would not be discussing the switch out of CDs to non-government guaranteed products, says Mike Clark, New York-based managing director and head of retail

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here