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.
Locking in principal protection
Merchant Capital is offering UK investors an at-risk growth product linked that locks in capital protection should the daily closing be at or above 110% of the initial level. Morgan Stanley is the issuer.
A complex payoff
The Royal Bank of Scotland has created a complicated retail structured product based on volatility for the Australian market and teamed up with National Australia Bank to help with distribution. Capital for the seven-year product is protected at maturity…
Uncertainty over FDIC insurance is affecting structured products industry
The US government is currently deciding whether to permanently increase the deposit insurance cover to $250,000 per depositor. The uncertainty is creating problems for the certificate of deposit industry.
Higher insurance premiums for structured products make RDR compliance difficult
Some professional indemnity insurers are charging higher premiums for structured products or are refusing to cover them. This makes it difficult for IFAs to offer them to their clients
S&P creates taxable municipal bond index
Standard and Poor's has created a taxable municipal bond index to give investors access to this low default risk, high return bond class.
Malaysian investors hunt for hybrids
Hybrid structures are increasingly popular in Malaysia as investors look to keep the cost of hedging down and moving away from capital protected products
Eurozone volatility helps German structurers
Volatility across the eurozone is making autocall products popular in the German market, where structurers can offer attractive returns
UBS reverse convertible index offers deposit-beating returns
UBS has created a reverse convertible index to offer German investors income which beats the return on bank deposits
Nasdaq creates its first sharia indexes
Nasdaq has launched two sharia-compliant indexes, the first in a family of indexes which it intends to launch.
UK investors swap FTSE 100 ETFs for emerging markets
Investors withdraw from ETFs based on the FTSE 100 in the first quarter of the year, preferring investments based on emerging markets and the US and European becnhmarks.
Source offers European ETF investors access to volatility
Source has brought exposure to volatility to the European market through an ETF based on the S&P 500 Vix Futures Index
Vanguard expands ETF offering with products on equities, fixed income and property
US ETF company Vanguard has increased its business with products on US equity benchmarks, real estate and bonds
Deutsche lists 10 exchange-traded commodities on the LSE
Deutsche Bank has listed 10 new exchange-traded commodities on the London Stock Exchange to complement the 19 it issued earlier this year in Frankfurt
Erste lists first turbos on Romanian exchange
Erste Group Bank AG issued nine individual certificates on to the Bucharest Stock Exchange as it joins the Romanian market.
UK Wrap: Vanilla repeats rule the roost
Among the few products launched in the UK during the past two weeks, the popularity of the FTSE 100 is continuing as investors remain nervous
UBS offers access to MLPs through fast-growing ETN market
UBS has launched a new exchange-traded note in the US, offering leveraged exposure to the Alerian MLP Infrastructure Index.