Macquarie Bank, a large player in equity derivatives for institutional clients, is now offering equity-linked investments ELIs to Hong Kong's retail market, says Matthew Long, associate director of equity derivatives sales.
The bank estimates the institutional market in Hong Kong saw HK$48 billion in premiums written over the past 12 months. With interest rates very low 2% for retail bank depositors and the economy struggling, investors are looking for alternative sources of yield. In markets such as Macquarie's home in Australia as well as the US, retail does have access to similar products, and now Hong Kong's Securities and Futures Commission has authorized Macquarie's ELI product.
Long says ELIs do differ...
