Barclays Plc and HSBC Holdings Plc have the most market access for selling structured products debt securities to individual investors in Europe and the U.S., respectively, according to a poll conducted by Greenwich Associates.
Forty-four percent of 179 retail distributors polled in Europe said that Barclays was an important structured security provider, according to Greenwich. HSBC was named by 71 percent of 69 U.S. distributors polled. A majority of respondents said that JPMorgan Chase & Co. and Barclays were also important issuers in the U.S., Greenwich said in a report today.
HSBC’s relatively good credit rating and its structured certificate of deposit program were among the reasons Greenwich named the bank the best in the U.S. this year, according to the poll. Barclays topped the list of European issuers because of its access to European investors. Moody’s Investors Service rates HSBC Aa3 with a negative outlook.
“The firms that receive the highest ratings for quality from clients are also those that provide comprehensive service throughout the entire structured product lifecycle,” said Andrew Awad, a consultant for Greenwich Associates on structured products, in the report.
U.S. investors have bought $31.3 billion of structured notes this year, 19 percent less than the same period last year, according to data compiled by Bloomberg. Banks create structured notes by packaging debt with derivatives to offer customized bets to retail investors while earning fees and raising money. Derivatives are contracts whose value is derived from stocks, bonds, commodities and currencies, or events such as changes in interest rates or the weather.