Content[ hide ] What is Special Limited Partnership? How can investing through an SLP benefit you? How to...
STRUCTURED PRODUCTS ISSUANCE
Investors seek tailored investment solutions, which is why structured products are on-demand. With Thales Capital, you can easily manage your structured products and improve your cash flow.
What are Structured Products, and How Do They Work?
Structured products are innovative financial instruments that use traditional investment products:
These products are combined with derivative components, turning into structured products. They are designed to provide tailored investment solutions that meet specific risk and return objectives.
Structured products work by packaging different financial instruments into a single investment product. These products’ structure is created through derivative contracts, which are designed to replicate specific investment strategies or achieve desired risk-return profiles. This allows investors to gain exposure to a wide range of assets and market opportunities while also benefiting from the risk management features introduced with the product.
The Benefits and Risks of Investing in Structured Products
Investing in structured products offers a range of benefits for investors seeking tailored investment solutions. These benefits include enhanced diversification, the potential for higher returns, and risk management features. Structured products can suit different risk appetites, providing investors flexibility and customization.
Structured products also offer the potential for enhanced returns by including derivative components. These derivatives can expose market opportunities not readily available through traditional investment products. By leveraging derivative strategies, structured products can offer investors the potential to increase returns or generate income even in challenging market conditions.
However, investing in structured products also carries certain risks. These include the potential for loss of principal, liquidity risk, counterparty risk, and market volatility.
Types of Structured Products and Their Investment Criteria
Common types of structured products include equity-linked, index-linked, commodity-linked, and fixed-income-linked notes.
Equity-linked notes expose investors to the performance of a specific equity or a basket of equities. These products have investment criteria that include factors such as selecting underlying equities, the level of capital protection, and the participation rate in equity price movements.
Index-linked notes offer investors exposure to the performance of a specific index, such as a stock market index or a bond index. The investment criteria for these products include factors such as the selection of the underlying index, the level of capital protection, and the participation rate in index movements.
Commodity-linked notes expose investors to the performance of a specific commodity, such as gold, oil, or estate. The investment criteria for these products include the selection of the underlying commodity, the level of capital protection, and the participation rate in commodity price movements.
Fixed-income-linked notes combine the features of fixed-income securities with derivative contracts to introduce investors to fixed-income markets. The investment criteria for these products include selecting the underlying fixed-income instruments and the level of capital protection.
Structured Products Issuance Management and Fees
Our experienced team assists clients in structuring, documenting, and launching structured products tailored to your requirements. We ensure compliance with regulatory requirements and industry best practices, providing clients with confidence in the issuance process.
Thales Capital believes in transparency and strives to deliver value to clients through cost-effective and efficient structured product issuance.
Structured Products Issuance Performance and Risks
Various factors, including the underlying assets, market conditions, and the effectiveness of the embedded derivative strategies, can influence the performance of structured product issuance.
It is essential to be aware of the associated risks. The complexity of these products can make them sensitive to changes in market conditions and underlying asset performance.