Data from the Swiss Stock Exchange showed investors increased their appetite for exchange traded funds and Swiss bonds in 2008, whereas demand for equities and structured products had one of their worst years.

ETF turnover on the Swiss Exchange rose more than 36% last year to SFr39.4bn. Demand for ETFs was underlined by the very active trading in them, rising more than 64% in 2008.

Swiss bonds were also popular with investors and turnover rose 24% to SFr189.7bn last year.

The global sell off in equities was mirrored on the Swiss Exchange, where turnover in equities and mutual funds fell 27% to SFr1.6 trillion.

Demand for structural products was also hit by investors eschewing complicated investment products, with the Swiss Exchange data showing a fall in turnover of just under 20% for these products and warrants to SFr60.4bn in 2008.

The Swiss stock markets main exchange, the SMI, fell 34.4% in 2008.

It would seem the need to be liquid at a moments notice outweighs a good closed end investment now days How many great equities can be recapitalized to the benefit of the investor in todays market. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

You have to remember that most structured products are traded OTC and thus therefore not listed on any exchange. So it's difficult to keep track of issuance.

These instruments are OTC because no clearinghouse in the middle guarantees the deal? That means more credit risk and that no single middleman is tracking net positions on a more or less real time basis?

YTD returns (2008) to present, no names just numbers work...

Thanks, JW

 

The $182 billion California Public Employees Retirement System last month committed  $150 million to the Carlyle Groups latest venture, a financial services private equity fund.

According to an internal memo, Carlyle is raising its first financials services buyout fund, Global Financial Services Partners, to target distressed sellers and divisional carve-outs in the financial services sector.

The fund will target banking, insurance, asset management, specialty finance (consumer and commercial), capital markets and financial technology companies. It has closed on over $600 million in commitments and is targeting a final size in excess of $1 billion.

Since mid-2007, financial institutions have written-down asset valuations 20-80% with some sub-sectors trading at a discount to book value, according to the memo. Based on this environment and past cycles, CalPERS believes the industry will remain challenged in the short-term and will need equity capital to reestablish confidence and improve balance sheet ratios.

 

 

no, OTC handling either means the issuer is to small or he is unwilling to work the exchange requirements, it has nothing to do with who and what guarantees or how settlement etc takes place, exchanges are notorious for thier costs of listing and handling and if you do not need them especially in a private placement you are much better off; however the liquidit of these instruments is usually lower so there is a price influence, if you already over extended in the public opinion than an OTC deal makes more sense.

Products are generally not listed as they are usually created bespoke for the end user, and thus there is no need to list (although some jurisdications and/or tax regimes require a listing). Channel Island (CISX) and Lux listings are easy to do though. The products still clear and settle through Euroclear.



The derrivatives held within the products are almost always OTC as they are designed for that particular product and the product's exposure. Generally the products having a longer time scale than options available on an exchange.



James: Sorry, but what figures are you enquiring about?



Thanks