As pension assets drop and future liabilities rise, traditionally conservative pension funds are turning to complex derivatives-based products. This offers a well-timed opportunity for investment banks that have the right skills.
Latest articles from Natasha de Terán
Appetites to satisfy
July 4, 2005
From new recipes to house specialities, demand for structured products is as strong as ever. Natasha de Teran investigates what is on the menu for investors and what tastes are being catered for.
Christophe Mianné, global head of equity derivatives at SG CIB, describes the equity derivatives business as being very much like the pharmaceutical industry: one in which players can either invest in research and development (R&D) and base their business on sophistication and innovation, or run a volume-based, generic business.
The long wait for European unity
July 4, 2005
Natasha de Teran considers Europe’s regulatory landscape, its impact on distribution and why banks have lost faith in the ideal of a single market.
Between the EU Savings Directive, the new International Accounting Standards (IAS), Basel II and the other edicts emanating from national and international regulators, derivatives structurers and markets have had a complex task in recent years. So much so, in fact, that the French have come up with a new word for describing their method of dealing with the issues: structuration.
ALM’s role grows
July 4, 2005
All the noise surrounding pension liabilities and EU-wide reform has meant that asset liability management solutions have now become one of the hottest topics in the investment banking world. Natasha de Teran asks what role equity derivatives can play.
Pension liabilities are the bane of many corporates’ existence and a worry for people who are not blessed with solvent defined benefit schemes or a good pool of retirement assets to cushion them in their old age.
ETF evolution speeds up
July 4, 2005
Exchange traded funds have been in existence for more than a decade but have only recently become significantly popular products. Natasha de Teran charts their progress and new developments.
Although exchange traded funds (ETFs) were first introduced in the US in 1993, they have really taken off in the past three or four years. In 2000 there were fewer than 100 ETFs listed globally, with less than $100bn in assets between them, according to research from Morgan Stanley’s ETF guru, Deborah Fuhr.
Small but perfectly formed
July 4, 2005
The equity sector may be one of the smallest derivatives markets but it has a high profile and a profitable reputation.Natasha de Teran investigates this highly lucrative business.
For the status it is given, you would never believe that the equity derivatives business is one of the smallest of the derivatives markets. The outstanding amounts of equity-linked, over-the-counter derivatives contracted were valued at a mere $4400bn at the end of last year.
Derivatives extend the reach of Islamic finance
June 6, 2005With huge assets under management and a growing population of issuers and investors, the Islamic investment market is being taken increasingly seriously. Natasha de Teran looks at how derivatives are being used to create Sharia-compliant products.
Crack squads to take care of ALM business
June 6, 2005
Asset and liability management is a growing area for banks and several major players have set up insurance and pensions teams, made up of specialists from a wide range of disciplines. Natasha de Teran reports.
Banks that are feeling sorry for themselves at having to grapple with the minutiae of the impending new capital adequacy framework should spare a thought for the European insurance industry.
But will it fly . . . ?
April 4, 2005
A plethora of new products in the credit derivatives market means that investors, and sometimes bankers, struggle to keep up with developments. Natasha de Teran asks why some products take off easily while others strain to build traction.
Credit derivatives have been the hottest and fastest growing sector of the over-the-counter (OTC) derivatives market for some time now, drawing in players in ever-greater numbers.
Search for yield unearths new dangers in credit markets
March 7, 2005Credit specialists have risen to market challenges with new products. However, the recent fashion for longer-dated synthetic CDOs could present more risks than investors realise. Natasha de Teran asks how concerned we should be about this latest trend.