Structured Products

Structured products are combinations of traditional financial instruments such as stocks and bonds with a derivative instrument utilizing such elements as equities, indices, interest rates, foreign currencies, metals or commodities.

Depending on how financial engineers combine the various elements, you can structure the pay-out profile of a product. No other instrument lets you shape risk/return characteristics as precisely as structured products.

Structured products not only let you benefit from rising rates and prices; they even let you optimize returns when the markets are moving sideways. And you can even make money in falling markets. Various products can be used for this, depending on market expectations and the individual risk profile of the investor.

Your advantages:

Risks:
Structured products give you certain claims against the issuer, which is why issuer quality is so important. Risks vary depending on the type of product used. Some structured products are more suited to investors with a small appetite for risk, whereas others carry more risk. What is important is that you understand the risks involved with a specific product and its underlying, and that you discuss these with your client advisor.