The direction of structured products

STRUCTURED PRODUCTS

It is difficult to get investors and advisers interested in structured products despite the fact they can make good returns, because advisers and investors have a tendency to turn to what they are familiar with - long-only equity vehicles

The structured products market has achieved record growth over the past few years, with the products becoming increasingly mainstream. Their recent popularity and growth has been driven largely by investors seeking safer returns after the poor performance of equities between 2000 and 2003. Now this market is recovering, some believe their popularity will decline as investors regain their confidence in equities and seek decent returns rather than just safeguarding capital. Participants in the structured products market argue that investors will however still want protection, and that as ...