The Rise of Structured Products

Structured products, such as autocallables and equity-linked securities, have gained popularity among retail investors in Asia and Europe. These products offer unique opportunities for investors to buy interest-bearing notes linked to specific indices or currencies. Investors are attracted to the potential for profits while still having some downside protection. However, these structured products can become complex and difficult to hedge, leading to potential risks for banks and investors. The market for these products has seen blow-ups in the past, causing concern over their impact on the wider financial system.