In the second part of this feature, we look at ESG underlyings and how the use of proxies will continue to be the reference to hedge exposures from structured products as no viable alternative is on the books… yet.

The trading losses triggered at the beginning of the pandemic mostly came from the Eurostoxx 50 book because the dividends were cut, and every issuer suffered from the dividend dynamics of the index. This was reflected in a move away from the most widely used underlying assets in the structured products market globally, as product issuers moved to de-risk their trading books . “Some of the trading losses at the beginning of the pandemic came from the dividends being cut at the same time a

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