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Asia-PacificMay 4 2010

Paving the way for a market revival

Thomas Fang, head of Greater China risk management products intermediary sales at UBSThe Asian structured products market is slowly rebuilding itself after the fallout from the global financial crisis. High-net-worth investors are getting their risk appetite back but providers are having to structure shorter-term products in order to win business. Writer Michael Marray
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Paving the way for a market revival

Asian private banking clients have traditionally been much less risk-averse than their European counterparts and do not typically buy capital-protected structured products. As a result, many private banking clients had big structured product exposures to falling stock markets in late 2008 and early 2009. Losses were compounded by the fact that many high-net-worth individuals expected their banks to extend credit and so were hit by margin calls as markets plummeted.

One private bank estimates structured product sales are currently at about 20% of 2006 or 2007 levels. However, the market is once again gaining momentum.

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