Accumulator products have returned to Hong Kong's private banking portfolios, with over $5bn outstanding from issuers, including Citi, HSBC and UBS, according to the Wall Street Journal.
The structured products, mockingly referred to as 'I kill you later', had been out of favour since markets collapsed leaving some investors with hefty losses and banks with a number of lawsuits.
The products, which allow investors to buy shares at a fixed price in the future, are reported to have seen a 'modest' pick up in business. However, the paper reported that, according to Citi, clients are much more conservative in terms of leverage and the product features.
Volumes remain low compared with the peak of the last bull run; for example, in April last year, Hong Kong regulators estimated that approximately $23bn in accumulators were outstanding.
The recent products are reported to have shorter durations and include features such as stop-loss-style mechanisms and reduced leverage.
Accumulators are not sold to retail investors in Hong Kong or Singapore.