Structured products look to the east
Issuers of structured products have been looking for new pastures, and to Asia, to tap into the property markets there - but the lack of robust indexes and the potential for volatility are making things difficult for structurers. Sarfraz Thind of Structured Products magazine reports
The market for structured products linked to real estate can be traced back some seven or eight years, as banks have looked to find ways for their clients to gain synthetic property exposure, at a time when the property markets have seen a near continuous one-way rise.
There have been some notable successes in the development of the product range. Barclays Capital's Property Index Certificates (Pics) range, introduced in 2004, with a yearly return in the region of 6%, has sold around £600m to
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