Regardless of market turbulence, structured products remain among the fastest growing investment vehicles available today and financial institutions continue to introduce new variations, tailored to investors’ needs.
This continuing evolution has introduced an increasing level of complexity, partly contributing to the subprime financial crisis.
An organisation’s success with structured products heavily depends on the effectiveness with which it carries out an adequate process for understanding and managing its product portfolio.
Now more than ever it is critical for the issuer to master all the elements surrounding the development of structured products, to ensure a maximum level of security and accuracy as well as to provide transparency to investors.
Our approach is based on our experience working together with financial institutions. It introduces a procedure to follow in order to safely develop, sell and trade structured products. This procedure incorporates four main steps, each of them being crucial to ensure a proper analysis and understanding of the product developed.