The advent of Solvency II and Basel III means insurers are reconsidering where to invest, just as banks are looking for new sources of funding. Structurers are seeking ways to play these mutual interests.

As companies abolish final salary pension schemes and governments seek to foster private pension provision, variable annuity offerings are moving to centre stage in Europe. But they require careful structuring.

Emerging market equities were outperformers in 2010, but investors are looking for more selective ways to play the market in 2011.

In theory, the advent of the Ucits IV Directive should lead to standardised documentation for structured products across the EU. In practice, structurers must still work with diverging national regulatory frameworks.

Banks are using volatility products with transparent structures and pay-offs that are easy to understand to attract a growing number of institutional and individual investors.