Volatility maketh the product

STRUCTURED PRODUCTS

Paul Burgin on using structured products in volatile times

Last Tuesday (15 June), markets went haywire. Contagion worries resurfaced, but not about Greek, Spain and the eurozone. This time it was BP and the increasing hostility it faces from US politicians over the Gulf oil spill. With volatility high, Matthew Robinson, executive director of Morgan Stanley’s institutional equities division, had just one hour to price and issue a structured product note for Brewin Dolphin’s Birmingham office. The company had £5m in seed capital from investors, but was willing for the note to be offered to other investors. Issued on Morgan Stanley’s own paper,...