Demand For FX Structured Products Jumps
Institutional investors are starting to purchase structured products linked to foreign exchange hedge funds.
Institutional investors are starting to purchase structured products linked to foreign exchange hedge funds. FX appeals because it is not correlated to other asset classes, noted structurers, and the variety of trading strategies can add further diversity to an institutional investment portfolio. Recent macro trends such as the dollar's decline have also drawn attention to potential returns. "FX is on investors' radars as a result of that," said Adrian Walkling, head of fx structuring at UBS in London.
Rashid Hoosenally, head of client strategy at Deutsche Bank in London, said it is seeing demand for fx returns packaged into a portfolio to give clients tailored exposure. "FX is being increasingly recognized as an asset class by institutional investors," he added.