Structured Products - Risk.net

Pimco total return ETF will be tipping point for actively managed funds

Fri, 10 Feb 2012 17:36:21 GMT

Actively managed ETFs are becoming more and more popular with investors, and the launch of a big mutual fund strategy with an ETF wrapper by Pimco will be a watershed moment for the industry

Hong Kong retail investors look to ELIs for their yield needs

Fri, 10 Feb 2012 13:18:05 GMT

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Retail investors in Hong Kong are favouring equity-linked investments on the back of more stringent regulatory requirements for structured products. At the same time, the appetite for foreign exchange-linked products – most of which escape the new rules – continues to develop in volume and sophistication

High-yield investor stampede met with new ETF offerings

Fri, 10 Feb 2012 12:52:00 GMT

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The long-promised revival in Europe's high-yield bond market has sent ETF providers rushing to create fixed-income investments that fit the bill

Strongest ever start to the year for US ETPs, say reports

Thu, 09 Feb 2012 12:59:00 GMT

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January sees record high in exchange-traded product assets under management, with US inflows representing 84% of global new assets for the month

EFG Financial puts the accent on collateralisation

Thu, 09 Feb 2012 12:39:32 GMT

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The Swiss connection EFG Financial Products has expanded its presence to the UK in the hope of replicating its success in the Swiss market. London-based managing director Alex Robinson tells Sarah Nowakowska about the growing importance of collateralisation and how listed products could take hold in the UK

Trade of the month: Autocallables

Wed, 08 Feb 2012 16:17:29 GMT

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Trade of the month: Autocallables

Market snapshot

Wed, 08 Feb 2012 16:16:23 GMT

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Market snapshot As the volume of sales of structured products in the US decreases, leveraged return products remain the most popular product, followed by bonus structures and then reverse convertibles. The UK market continues to be led by capital-at-risk annual kickouts, with simple growth products next and then capital-at-risk income notes, writes Tim Mortimer

FVC custom indexes

Wed, 08 Feb 2012 15:58:00 GMT

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FVC custom indexes

Private banks caught in the crossfire from retail regulations

Wed, 08 Feb 2012 15:56:51 GMT

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Status anxiety Private banks have tended to concentrate on the super-wealthy – clients they now call professional investors – but as new regulations governing structured products continue to categorise most high-net-worth individuals as retail investors, private banks are left grappling with the same regulatory challenges as their retail counterparts. Magda Ali reports

Private banks caught in the crossfire from retail regulations

Wed, 08 Feb 2012 15:56:00 GMT

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Lookback

Wed, 08 Feb 2012 15:55:16 GMT

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Lookback Fixed-income ETPs see assets under management grow fastest; how wealth management industry contributes to UK GDP; fine wine index tipped for surge; survey reveals optimism among fund managers; New UK regulator urged to boost consumer protection

Product performance

Wed, 08 Feb 2012 15:54:24 GMT

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Product performance Based on three different US underlyings, FVC outlines the performance of two accelerated growth products and an investment that is principal protected

Retrospective: Morgan Stanley leverages the downside

Wed, 08 Feb 2012 15:52:19 GMT

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Follow the bear This Morgan Stanley product was aimed at bearish investors seeking to profit from declines in the Russell 2000 Index. Principal was at risk if the index performed above a certain level

Retrospective: JP Morgan autocall victim of short-termism

Wed, 08 Feb 2012 15:51:32 GMT

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Get shorty Short-term products carry the disadvantage that there is so little time to recover should the market move against the investor. This was true for the six-month autocallable JP Morgan created in November 2011, based on the Russell 2000 Index and the SPDR S&P Metals and Mining ETF

Morgan Stanley's six-year kickout linked to the FTSE 100

Wed, 08 Feb 2012 15:50:45 GMT

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Kickout by FTSE Morgan Stanley is offering a FTSE 100-based plan offering the higher of a fixed coupon or the performance of the index, as long as a 50% barrier is not breached at maturity. For the product to pay above the fixed return, the index would have to be below its initial level on the first valuation date and then rise to above the relevant kickout payment on subsequent anniversaries

HSBC straddle product offers each-way bet on S&P 500

Wed, 08 Feb 2012 15:50:03 GMT

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Down, but not necessarily out HSBC has produced a product that pays out if the S&P 500 rises and also if it falls, with returns on the upside subject to a cap and those on the downside offering greater scope for profit. However, investors must live with the threat of a 70% barrier that could potentially erode the entire principal if breached

Defensive strategies by different means: the divergence in the German and Swiss markets

Wed, 08 Feb 2012 15:48:59 GMT

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Playing it safe Transparency and simplicity remain a key theme for structured product providers in Germany and Switzerland, where even high-net-worth-individual accounts at private banks want simple payouts and low counterparty risk. By Michael Marray

Special report: Private banking

Wed, 08 Feb 2012 15:47:00 GMT

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Special report: Private banking Private banking has become more popular for a number of reasons. Whether it is due to the lack of regulation or the openings for more complex products, private bankers are becoming a more important player in the structured products world

OCC: equity derivatives to get a cross-margin service

Wed, 08 Feb 2012 15:45:58 GMT

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OCC: equity derivatives to get a cross-margin service Margin efficiency is going to be key to both listed and OTC derivatives markets, but the equity market has been lagging - a result of regulatory opacity. Michael Watt talks to Mike McClain, executive vice-president and head of business development and operations at Chicago’s the Options Clearing Corporation about how to do it

RBS retains structured products in restructure

Wed, 08 Feb 2012 15:43:40 GMT

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Trimming the fat Royal Bank of Scotland retains its investor products and equity derivatives businesses in its latest restructuring, but ditches cash equities, corporate broking, equity capital markets and mergers and acquisitions. Richard Jory reports

ETFs: moving beyond the synthetic-versus-physical debate

Wed, 08 Feb 2012 15:40:00 GMT

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Under the microscope The past year has seen the exchange-traded funds industry plagued by discussions about the relative complexity of synthetic and physical ETFs. Will the newly published European Securities and Markets Authority guidelines on the products put the matter to rest and provide market participants with regulatory certainty? Hannah Collins reports

Start of 2012 sees surge in commodities ETF launches

Wed, 08 Feb 2012 15:38:00 GMT

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A bumper crop Commodities have returned to the structured products spotlight as providers come up with new, more efficient ways of gaining exposure to the asset class and explore innovative ways to package commodity-based investments. By Hannah Collins

The new normal: structurers learn to live with low interest rates

Wed, 08 Feb 2012 15:37:00 GMT

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The low rates challenge Rock bottom interest rates in a difficult macro environment and the prospect of upcoming regulations have led to a need for banks to focus on products optimised around constraints. As the mood remains cautious in Europe and many developed markets approach the zero-rate boundary, the emphasis on robust strategies that can take account of more factors is gathering momentum. Sarah Nowakowska reports

Arnaud Sarfati to exit SG CIB in reshuffle

Wed, 08 Feb 2012 15:36:18 GMT

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Sarfati to leave as SG rings the changes Arnaud Sarfati is expected to leave SG CIB; John Tessar joins JVB Financial; Levy and Mutin say goodbye to UBS; Deborah Fuhr no longer headed to Bank of America Merrill Lynch; Whitehead heads commodities at SG CIB; Nomura bolsters Asia-Pacific equities and global macro strategy teams; BarCap names Bacha as new equity derivatives head

ETF roundup

Wed, 08 Feb 2012 15:29:14 GMT

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ETF roundup