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Editor`s letter
While you ponder yet another acronym for structured products - they are now Prips, or packaged retail investment products, according to the European Union - reflect upon the fact that there has been some kind of progress in the calamitous world of regulation. Nudging along slowly but surely, the EU has promised a new directive to further define the duty of care bestowed by the Markets in Financial Instruments Directive (Mifid). 
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Cover Story:
A capital lifeline?
Guaranteeing investors' capital with your own bonds has always been a convenient way for banks to borrow money from investors at the same time as offering them a cut in the upside of the chosen underlying in a structured note. Such fundraising is often seen as a positive consequence of the structured products business rather than a reason for it, but current market conditions could reverse this state of affairs. Surprisingly, some of the riskier credits are attracting the most interest. Peter Koh reports  |
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Marketing:
The marketing mountain
Marketing structured products is a tough challenge, with both nascent and established markets battered by the Lehman Brothers collapse. Meanwhile, providers must also adapt their techniques to suit interactive and online channels, and be increasingly rigorous in their attention to disclosure. How are they handling the transition? Sophia Morrell reports  |
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ETF Special Report:
Holding counterparty risk at arm’s length
Exchange-traded funds have been as exposed to talk of counterparty risk as the next structured product, although the risk is lower. Under the European Union's Undertakings for Collective Investment in Transferable Securities III regulations, ETFs are subject to as much as 10% counterparty risk, a figure that can double if the delivery technique is derivative rather than physically based. Richard Jory reports |
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Technology survey:
More speed, more efficiency
Banks are increasingly aware of the speed and efficiency that is required to process data when creating and dealing in structured products. Calls for transparency and liquidity mean it is vital to choose systems that can cope with the products' complexity. Clive Davidson reports on the results of Structured Products' first survey of the technology providers in this area. Research was provided by Xiao-Long Chen |
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