Structured products
WHAT IS THIS? Structured products are investments that have multiple components. For retail investors, the most common form is a bond plus an option – these tend to be standardised, sold in small tickets and large volumes. Managing the risks of large structured products portfolios is one of the biggest challenges dealers face.
Dealers’ WKSI woes: a case of rough justice?
Stripping firms of special issuance status suggests heavy-handed approach by SEC
FVC analysis: leveraged return vs dual directional products
Offering investors gains on the downside can present risk management headaches
China leverage clampdown to hit two-tier structured products
Product issuers look to derivatives to boost returns, but options are limited
TLAC subordination requirements loom in Europe
EC favours excluding derivatives from MREL and taking French approach to subordination
VAR versus expected shortfall: why Priips has got it wrong
Hardwiring of older risk measure into Priips means risk ratings could mislead investors
People: Credit Suisse’s Bhandari joins Nomura
Folloit joins Citi from BAML; Barnard departs RBS
Dealers decry wrangling over EU structured product reforms
MEPs' threat to vote down Priips RTS could herald "nightmarish scenario"
Eiopa signals soft-launch of Priips
Regulator looking at solutions for firms that can't meet 'very challenging' timeline
Securitisation losses rattle peer-to-peer lenders
Marketplace lending hit by downgrades, legal worries and questions over structure of deals
Structured note issuers warned on faulty disclosures
Fines for BAML and UBS highlight importance of accurate cost disclosures
Dealers rue loss of US structured product issuance freedoms
SEC’s removal of special status from select banks hits marketing and issuance capacity
Brexit is a tragedy for EU financial services regulation
Loss of influence belies critical role UK played in crafting sensible financial rules
Deriving derivatives
Andrei Soklakov shows how to incorporate traditional investment ideas and clients’ views into structured product design
Sterling swap rate collapse hits structured deposits
Post-Brexit halving of five-year swap rate sees Hartmoor pull FTSE deposit plans
Why the Priips risk indicators hurt structured products
Risk ratings ignore soft barrier protection and make differentiation difficult
FVC analysis: stress testing worst-of autocalls
Dual- or triple-index products offer higher potential gains but carry increased risk
Basel arbitrage warning leaves dealers guessing
Banks told to avoid trades that offset regulatory adjustments, but details are thin
Structured products' unseen enemy
Relentless focus on Priips compliance leaves industry vulnerable to hidden threats
UK law sparks bonfire of ‘unfair’ structured product terms
Obscure provisions in UK Consumer Rights Act could threaten issuance programmes
Volatility traders wrestle with digital risk of Brexit
Skew on major indexes leaps after market wakes up to risks of UK's referendum
Tech pioneers stay ahead of the pack
Sponsored Q&A: Altura Markets
Banks remodel issuance structures to combat TLAC
New subsidiaries set to dodge structured note issuance limitations
Asian private bank clients switch to rate structures
Stock market falls steer clients away from traditional equity focus
People: Citi names new global equities co-heads
Guenther rejoins BNP Paribas from Mercuria; Lacour takes helm at HSBC