A total of 106 structured products made available to advisers since the start of 2011 have a Eurozone bank as a counter party, Investment Adviser has recently revealed. The figure represents 14 per cent of the total of 750 structured products issued to advisers and sold to clients over the period.
As Spain recently became the latest Eurozone state to see a group of its banks have their credit ratings cut, with Moody’s downgrading 16 of the nation’s lenders including ‘big three’ giants Santander, BBVA and La Caixa may of us may have been wondering what would happen if a Eurozone bank was to collapse. It’s true the capital held in structured products that used the bank as a counter party could be at risk although the European Central Bank is continuing to take steps to ensure the stability of the Eurozone.
Data from StructuredProductReview.com, which lists all structured products available through UK advisers, shows that 62 products launched since the start of 2011 are backed or partly backed by the UK arm of Spanish bank Santander, including 12 through its Abbey National subsidiary. These include 15 products issued by Legal & General, and four issues of Aviva Investors’ Defined Growth Plan, which include Abbey National among six counterparties.
StructuredProductReview.com founder Ian Lowes said: “Advisers should be very aware of counterparties in order to diversify - limiting exposure to one counterparty is critical.”
Enable’s IFA’s are able to help you to review your exposure to the Eurozone and would be happy to help you make sure your investments are diversified.
No comments:
Post a Comment