Europe: knock-in barriers show shift to lower protection, coupon levels in slow decline

The balance between generating extra yield while managing the downside risk through down-and-in puts is crucial in structured products. It enables investors to optimise their returns without exposing themselves to significant losses, therefore achieving a more favourable risk-return profile. The lower equity volatility regime and declining interest rates in 2024 have led to a compression of both coupon levels and protection barriers The lower equity volatility regime and declining interest r