Asset Class

Structured Products Research Hub

The research outlook for structured products in 2026 is defined by significant regulatory evolution in Europe and a strategic shift toward yield-enhancing derivatives in a falling rate environment. European securitisation reforms are expected to boost supply by cutting reporting fields by 35% and lowering risk weights, positioning the market as a vital tool for capital relief (SRTs) and SME funding. In the credit space, CLOs remain in high demand with a robust pipeline of refinancings and resets anticipated as billions in notional value exit non-call periods. However, credit selection is paramount as analysts highlight a bifurcated market where 10% of leveraged finance issuers face distress, alongside ongoing monitoring of CMBS delinquency data. To navigate equity volatility, strategists recommend using reverse convertibles to generate coupons and execute 'buy the dip' strategies on themes like AI and Power. These structured solutions offer a defensive alternative to cash, which is expected to underperform as the Federal Reserve targets a 3% rate by 2026.

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