Oil volatility fuels structured note demand

摘要

Commodity-linked structured products are enjoying a resurgence as a jump in volatility creates new opportunities to generate double-digit returns. Sky-rocketing oil volatility that has accompanied the 50% decline in prices over the past six months has triggered a surge of demand for notes linked to the commodity. "The bulk of interest has been on WTI, which has bottomed out and bounced in a US$10 range. It's a good entry point for investors and with volatility increasing from 15% to 40%, you can make structured notes with attractive coupons and protection," said Alexandre Cosquer, global head of commodity investment solutions at Societe Generale.