Greenwich Associates has released its 2010 list of Greenwich Leaders in the market for structured products sold to retail, high net worth and family office investors in Europe and the United States.
The global market for structured products in 2010 was marked by a significant bounce back in volumes in the United States and continued robust trading in Europe, according to the results of Greenwich Associates’ most recent Global Retailed Structured Products Study.
“The market in the US has come back faster than many people had expected,” says Greenwich Associates consultant Andrew Awad. “Many investors are looking for the chance to participate in the market recovery while still protecting their principal.”
While counterparty risk remains an important consideration for distributors selecting providers of retail structured products, the results of the Greenwich Associates study show that both distributors and end investors are placing an increased emphasis on secondary market liquidity.
“As the market matures, investors are increasingly focused on making sure they have an exit,” says Andrew Awad. “As a result, liquidity provision has become a big point of differentiation among product providers.”
Greenwich Leaders in Retail Structured Products have established deep penetration into the third-party distribution marketplace by building and maintaining strong capabilities across the full spectrum of services associated with these products. This spectrum stretches from all aspects of origination – including product design, innovation and pricing – to sales coverage, marketing support, execution and post-trade servicing. Post-trade servicing encompasses a range of functions including product valuations, monthly reporting and secondary market support which is defined as the ability and willingness to provide dealable quotes and consistent liquidity.
In Europe, BNP Paribas and Barclays Capital are the 2010 Greenwich Leaders in Retail Structured Products Market Penetration. The Royal Bank of Scotland is the 2010 Greenwich Quality Leader in European Retail Structured Products. Also notable for its performance last year is The Royal Bank of Scotland, which receives high quality ratings among a smaller base of European clients.
In the United States, HSBC has achieved the highest level of market penetration, followed by JPMorgan and Barclays Capital. These three firms are the 2010 Greenwich Leaders in US Retail Structured Products Market Penetration. HSBC is the 2010 Greenwich Quality Leader in US Retail Structured Products.