Advisers raise concerns over structured product counterparty risk

Several experts asserted that these structured products providers were wooed by the banks' impressive rates, when in fact alarm bells should have been ringing. Mark Owen, sales director at Keydata, commented: "We took the view a long time ago only to promote banks with high credit ratings. We also don't run with terms which seem too good to be true, as these banks are obviously desperate. Both Bear Stearns and Lehman Brothers pushed for business and offered fantastic terms, but we declined - we have nothing with any exposure to Lehmans. While our products don't look as good, our paper com...