Government bailouts spark counterparty overhaul

Government intervention on banks is overhauling the structured product space as more providers look ...

Government intervention on banks is overhauling the structured product space as more providers look to review their counterparties. Morgan Stanley is looking to launch a gilt-backed income plan where a closed-ended subsidiary company in the Channel Islands will buy government bonds to raise money for Morgan Stanley to buy derivatives. Vice president Marc Chamberlain says: "This is not a new concept but was previously done in the discretionary management space - this is Morgan Stanley's first foray into the retail space. It is hoped investors will see it as a safer option. While all prod...