I am doing some research on structured products, these products offered by private banks are not popular in the US but represent a sizeable market for asset managers and advisors in Europe. By structured products I mean reverse convertibles, principal protected notes (option + zero) and certificates on baskets of stocks but also warrants issued by banks over stocks trading on the exchanges. Personally I would not invest in any of those products, what I am trying to understand is why this market is so big in Europe but virtually non existent in the US except at private banks catering to a privileged few (and where those products I believe are usually customized). I am also trying to understand how banks are able to make big profits on these products while still delivering something that is beneficial or at least looks beneficial to customers (the market accounts for a large share of revenues at Swiss private banks for ex. and some small firms focus exclusively on structuring and selling such products as well as more run of the mill option strategies). I assume the money comes from overpriced embedded options and management fees but I am no expert in option strategies and pricing and am looking for the opinions of those that are familiar with those products and their inner works.