The Swiss bank has brought the largest commodity trade in the US structured note market in two years, on the back of a rising demand for commodities and its completed integration with Credit Suisse.
Commodities traditionally sit on the fringe of the US structured products space where equities are inarguably dominant, particularly the S&P 500 in a bullish market this year. One reason is that commodities are often viewed as a “far more volatile” asset class than equities. It also requires momentous investor education revolving around the role of commodities in a portfolio and as a hedging tool for inflation, according to the structured notes desk of UBS in New York. “A