From strength to strength

Investor appetite for derivative-based products remains strong as the recent credit crisis has proven to have educated investors about product vulnerabilities and risks

A year after the Lehman Brothers collapse, structured products continue to sell well as investors’ appetite for these derivative-based products remains strong. And, there is no reason why it should not as market crises are also meant to make investors smarter about product vulnerabilities and risks. Although the initial, overwhelming temptation when a crisis strikes is to write the product obituary, it is never the product but the abuse of it that ought to bear our wrath. The Financial Services Authority announced in May it will widen the scope of its structured products’ review and take...