A group of four panellists from the buy- and sell-sides discussed the shift in their structured product offering in a rising interest rates and high inflation environment.

The year of 2023 saw an asset allocation shift from equity-centric to rates, followed by credit and equity. "[This] does change the way we design, and we think about equity structure," said Mohamed Hemissi, head of EMEA equity payoff structuring at J.P. Morgan, referring to volatility and higher interest rates. The reach of equity volatility remains relatively low, especially on very short term, but it represents a "significant change" from the past 10 years where the volatility and the premium

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