Structural shifts
The volume of structured products has declined dramatically over the past 12 months. With equity prices collapsing, some of those that are still investing are focusing on capital-guaranteed, income-generating structures. But do these products represent the best opportunity in the current market? By John Ferry
It is of little surprise that with equity markets tumbling over the past year or so, those investors still participating in the structured products market are looking for certainty.
Volumes are down across the board, but some dealers report a pick-up in interest in capital-guaranteed, income-generating products.
On the surface, this would seem to make sense. Capital is protected (assuming the issuer does not default), and the investor might receive a small annual coupon, along with a certain
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