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.

Fuelling an emissions market

The carbon emissions credits market is heating up as investors are increasingly able to tap into the theme via structured products and exchange-traded funds. But how viable is the carbon theme as an underlying and what challenges do structured products…

Lehman restructured

The collapse of Lehman Brothers left billions of dollars of structured notes with unhedged exposures, prompting issuers to scramble for new counterparties to restructure trades. Meanwhile, some structured product providers have offered hope to investors…

The transparency tide

The issue of counterparty risk and how best to convey it to retail investors dominated the agenda at the Structured Products Europe conference. Delegates explored ways of identifying and mitigating risk, while the rise in structured funds and regulation…

Stepping stones

Risk-averse retail investors are shying away from fully regulated sales products that are capital at risk in favour of deposits. But structured products provide a natural stepping stone for Yorkshire Building Society to bridge this gap while delivering…

Mittel European Reflections

Central and eastern Europe is a huge potential market for structured products and exchange-traded funds. Structured Products' first conference in the region explored commodities, foreign exchange and diverse underlyings, but the most pressing issue was…

Market snapshot

Tim Mortimer of Future Value Consultants looks at the pricing issues for structured products in different markets and provides his trade of the month

The search for a deposit base

The fallout from the default of Lehman Brothers continues spread across the structured products industry, as arrangers seek to reassure nervous high-net-worth clients that their investments are safe. Michael Marray reports

A focus on funds

The Italian structured products market is shrinking in the global financial crisis, while exchange-traded funds race ahead. Traditional methods of guaranteeing structured products were brought into question at the Structured Products Milan conference,…

Swiss sophistication

Swiss investors have been stung by losses stemming from typical worst-of structures, while the aftermath of the credit crunch is eroding confidence even further. But New Private Bank is restoring some faith with original structures and a safe approach to…

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