Investors in Asia are following Europe's trend and swapping 100% capital protection for more leverage. "Clients are looking for more upside exposure," said Kurt Ersoy, head of marketing for the equity derivatives and convertibles unit at Credit Suisse First Boston, in Hong Kong.
Ersoy noted the recent interest is being driven by the strong performance in Asian equities and investors are willing to accept capital protection of 80-95% rather than 100% in order to obtain greater equity exposure.
"These products are being adapted from Europe for use in the local markets," said Matthew Long, head of equity derivative sales at Macquarie Equities (Asia) in Hong Kong.
