After the recent market crash triggered by the Covid-19 pandemic some of the best opportunities today are in the structured products market where volatility provides investors with better entry levels, higher coupons and enhanced buffers across underlyings and asset classes.
Most of the focus over the last few days has been on the negative aspects surrounding the increase in hedging costs and the challenges around pricing, the impact of barrier breaches in autocall products and exchange-traded note (ETN) closures. This could be a wake-up call for the industry because regulators are going to look into those products more, and how much leverage and exposure is correct for the market, an investment banker told SRP. “Fortunately, the markets were rallying compar
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