The road to a quality Street
The Lehman Brothers bankruptcy was unprecedented in US structured products history and brought the burgeoning market to its knees. After capitalising on certificates of deposit, there are indications that investors may be recovering their poise. Richard Jory talks to providers and distributors, as well as lawyers and the US trade association about life one year on from the bank’s demise
Structured Products: How sensitive are investors to an issuer’s credit rating a year after the Lehman Brothers bankruptcy?
Richard Couzens, head of product origination, investor solutions at Barclays Capital: Investors remain sensitive to issuers’ credit ratings and are more aware of the associated credit risk related to their investments. However, general levels of risk aversion have eased, related to a sense of stabilisation in the economy. March 2009 is recognised as the inflection point.
Lowe
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