The sovereign guarantee
Even in an era of government-backed banks, it is clear that investors do not equate a public stake with investment security. Those looking for watertight investments have been left with two options - structured deposits or collateralised plans. Will government-backed funds become a permanent feature of the structured products market? Sophia Morrell reports
The perception among investors that major banks are 'too big to fail' has waned over the past six months, and providers looking to cash in are left with one of two options. The first is to structure market-linked deposits that fall under existing compensation schemes, and for which limits have been upped by UK, US and Irish governments.
This area looked set to continue broadening with new providers positioning themselves to enter the space, product ranges expanding and, despite the lower returns
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