2009 US Distributor – Structured Products Magazine
In a game-changing year for the US structured products industry, Incapital's business might have been expected to suffer, with a product mix numbering 70% reverse convertibles and a rapidly contracting market. However, far from its business shrinking, Incapital sold US$1.5 billion of product in 2008 - a 50% increase on 2007 - as a result of its astute adaptation to the new and challenging environment.
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2008 US Distributor – mtn-i Magazine
2008 will be remembered as the year in which structured product investors experienced the reality of credit risk. Incapital anticipated increasing sensitivity to credit among US retail investors by growing its range of FDIC-guaranteed structured CDs by both issuer and product type. Employing a mix of global banks less affected by sub-prime exposures, such as JPMorgan, HSBC and Barclays, as well as domestic commercial banks Harris and SunTrust, Incapital reversed the bias of its structured product platform. From 80% reverse convertibles in 2007, it had moved to 75% structured CDs by the end of Q3.
2008 US Distributor – Structured Products Magazine
It has been a phenomenal 12 months for Incapital. After distributing more than US$1 billion of structured products in 2007, the US distributor acquired its closest rival, LaSalle, consolidating its position as the biggest player in the aggregated dealer space. However, it is not size alone that impresses. The distributor has also distinguished itself from its peers through a determined effort to educate advisors about the benefits of structured products - a crucial requirement for the development of a market that constantly needs to challenge the dominance of mutual funds.