Structured products maturing in December will provide over £900m of rollover money to players in the market, compared to the £600m of maturities returning to the market in November. December is set to have 69 products reaching the end of their life cycle with an estimated volume of £927m.
SRP data shows that the £927m of initial sales maturing in December will provide new rollover opportunities to 40 UK providers. Barclays and Santander with six products apiece will see the largest number of products maturing in this period. The highest selling maturity in December was Halifax's Guaranteed Investment Plan, a five-year portfolio insurance structure linked to the FTSE100 which returned the initial investment as the underlying which struck at 6021.5 in 2006 had a level of 5139.80 in its last observation date. This product, which was hedged by Lloyds Banking, sold an estimated £170m.
The second top-selling maturity in October is BNP Paribas UK High Income, a six-year call overwriting linked to a basket of 20 FTSE100 shares which matured on Thursday. This product sold an actual volume of £141.61m in December 2005.
Barclays will also have rollover opportunities in December following the maturity of a top three seller in its range. Barclays' Defined Returns Plan - Capital Protected Options - October Edition (3yr), a FTSE100-linked digital structure which sold over £70m in December 2008, will mature tomorrow paying out 120% (6.6% pa) of initial capital after three years as the underlying struck at 4309.08 and has a current level of 5546.90, an increase of approximately 28.7%.
The UK market could also see potential early maturities of knockout products adding an extra £126m for rollover opportunities from 20 products/14 providers. The average tranche ticket for all the products maturing in December is £13.6m compared to November's average of £9.5m.
These products are available in the UK database.