HSBC, Barclays and J.P. Morgan Dominate U.S. Retail Structured Product Market

Stamford - 14 January 2016

Greenwich Associates Announces 2015 Share and Quality Leaders

The U.S. retail structured product market is dominated by three issuers—HSBC, Barclays and J.P. Morgan. All three firms are named as an important issuer by more than 70% of product distributors participating in the annual Greenwich Associates 2015 U.S. Retail Structured Product Study.

Over the past 12 months, the number-four ranked firm, BNP Paribas, held onto the impressive gains it made in 2014 and now claims a 43% share. Goldman Sachs expanded its footprint in 2015 and ranks fifth with 36%. These five firms are the 2015 Greenwich Share Leaders in U.S. Retail Structured Products.

Distributors in the U.S. continue to recognize the high quality of service that HSBC provides, and the bank ranks as the clear 2015 Greenwich Quality Leader in U.S. Retail Structured Products.

“Not only is HSBC considered tops in quality this year, the firm is also mentioned more frequently as a “Top 3” issuer than is any other competitor,” says Greenwich Associates consultant David Stryker.

Investors Seek Fresh Sources of Yield
Total notional volumes for retail structured products distributed by U.S. firms remain at over $54 billion annually. Products based on equity underlyings continue to account for the bulk of activity (61%), with the majority linked to an equity index.

Not surprisingly given the search for yield in a continued low-rate environment, the retail structured product market is experiencing increased demand for innovative new ideas, with 46% of distributors (up from 33%) noting that it is one of their key criteria for selecting an issuer. “As the market continues to mature, distributors are looking for issuers who provide them with fresh product ideas,” notes David Stryker.

Looking forward, distributors expect the greatest demand to come from products with maturities of greater than a year.

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