The $300 Billion Structured Notes Market Is Booming
The structured products business in the US has gotten very large recently — on track to hit $300 billion in sales this year. What was once an opaque financial product is getting a lot more attention. So what are structured products, exactly, and how are they influencing the economy? In short, structured products are basically a fusion of a bank IOU with a derivative product, but that underplays how complex they are and how they are shaping market dynamics. On this episode, we speak with Alex Micalizzi, who is the international head of equity structured notes at Nomura, and he gives us what might be the clearest explanation of how structured products are created, how they work, and why sales in structured products has grown so much in the last year. (Source: Bloomberg)
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