Structured offerings rise

product providers are finding low volatility in the current climate ideal for new launches

Some £300m of structured products are due to hit the market over the next few months, as product providers take advantage of the current low level of volatility of the FTSE 100. Rather than risking an upward spike in volatility, Jeremy Soutter, head of global product development at Morley Fund Management, said that £300m of options have been bought at this level of volatility, around 10%, in recent weeks for future product use. With volatility so low, the price on call options on the FTSE has fallen, meaning products can offer more upside on money secured, with current launches typically...