Morgan Stanley is to offer structured notes to the UK discretionary market with Canadian Imperial Bank of Commerce (CIBC) as the counterparty.
The venture will give investors a further option to diversify counterparty risk; discretionary investors/fund managers can choose either Morgan Stanley or CIBC as the issuer of a structured note.
Rebecca Davies, vice president at Morgan Stanley, says: “This exciting new partnership gives discretionary managers another counterparty to choose from. CIBC is a major structured product provider in Canada, and we expect this venture to be of great benefit to both parties as well as to our wider client base.”
Ed Dodig, managing director and head of CIBC in Europe, says: “We are pleased to make our product offering available to Morgan Stanley clients and leverage Morgan Stanley's expertise in the UK market. We expect these notes will be of great interest to investors given our leadership in Canada in this product area as well as our ranking as the strongest bank in North America by Bloomberg Markets.”