Structured product biz “not getting smaller”

By Jame DiBiasio | 10 February 2009
Keywords: sg
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Sandra Lee at SG says complex products are a legitimate addition to a well-diversified portfolio; immediate growth may rely on registered products, not private placements.

Anyone in Asia's structured-products world faces a crisis of confidence in the wake of the Lehman minibond fiasco and heavy losses among the region's richest families from 'accumulator' products (structures that sold options on a variety of underlying assets).

Lehman Brothers was not the only bank creating complex derivative products for high-net-worth, retail and institutional investors: all the banks were. The industry now faces not just the potentially heavy hand of regulation, including pressure on distributors to reimburse retail investors, but a challenge to its ...

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