Low yields and record-high stock markets are prompting more and more investors to consider derivatives. Michael Marray explores why volatility trades are proving particularly popular, and how banks have responded to meet investor demand.
Latest articles from Michael Marray
A new regime for equity volatility
July 1, 2016Low interest rates and stagnant equity markets have seen an increasing number of equity portfolios using derivatives to boost yield. Michael Marray looks at the changes in this field, as the trading of volatility as an asset class increases in popularity.
Germany sticks to the script
July 1, 2015Many German banks had their fingers badly burnt in the financial crisis, having disastrously expanded into areas such as Spanish real estate and global shipping. As a result, the country's private banks, sparkassen and landesbanken have largely reverted to type, happy with unspectacular but predictable growth in an oversaturated domestic market.
Investors look to cross-asset derivatives strategies
July 1, 2015Frustrated by poor returns from traditional long-only portfolios, investors are increasingly examining the possibility of venturing into cross-asset derivatives strategies. And dealers are keen to offer such products, with Risk Premia indices proving particularly popular.
New environment forces change in the world of structured products
July 1, 2014Low volatility and low yields are making life tricky for structured product providers. But by broadening their range of products and by doing more to tap upcoming markets, such as Asia, they have been able to ensure they get plenty of business.
German banks smarten their appearance ahead of ECB review
December 2, 2013German banks will want to look as good as possible for the European Central Bank’s asset quality review, especially in light of the country’s hard line during various sovereign debt and banking crises in the wider eurozone.
Rough waters threaten Germany's shipping loans business
July 1, 2013According to the country's central bank, the shipping loans on banks' balance sheets are posing a considerable risk to the German banking sector, but some German banks are reluctant to deleverage their portfolios at a loss.
Structured products search for the right balance
July 1, 2013The impact of low interest rates, new EU regulations and the predicted lessening of quantitative easing in Europe and the US mean structured product providers are being called upon to provide innovative solutions to reduce risk in both retail and private banking.
Cyprus bail-in threatens to infect eurozone
March 25, 2013The situation in Cyprus is at crisis point, as The Banker goes to press, with banks closed to prevent a run in what analysts are calling the eurozone’s muddiest crisis so far. How did it come to this?
The long road to project bonds
March 1, 2013It has proven to be a slow and laborious process getting the first credit-enhanced project bonds structured in Europe, but the first deals are finally expected in 2013.