Lehmans- One year on: Structured products bounce back

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Structured products have seen a surge in popularity this year due to the industry's prompt reaction in clarifying counterparty risk following the Lehman bankruptcy, plan providers say.

Despite the continued uncertainty surrounding the return of the £107m of investors’ capital tied up in Lehman-backed plans, sales of structured products have soared in 2009.   Last year, structured products sales totalled £9.2bn, while year to date sales have already reached £10.9bn, according to StructuredRetailProducts.com. While the FSA’s thematic review of structured products and its wider implications review of plans affected by the Lehman insolvency are still in progress, investor confidence has been buoyed by the increase in transparency, plan providers say.   “Lehman’s collap...

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