Structured products have attracted considerable attention over recent years. Now an investment staple in many markets across the globe, more and more financial institutions are issuing and trading structured product notes because they can be ideal products during times of low interest rates. For investors, it can mean earning an enhanced yield compared to lower yielding fixed income products, as well as facilitating highly customized risk/return objectives; for issuers, it can mean a steady flow of revenues.
As a result of growing investor attraction to these derivative instruments, competition between issuers is tightening. Firms need to be able to innovate quickly to meet market demand and beat competitors. That’s why more and more market participants are automating the front office.
To help better understand the challenges and opportunities that a range of firms face when operating in this business, the current trends and future of structured products, and how the digital evolution is impacting the market, Numerix’s Ilja Faerman, Senior Vice President of Client Solutions EMEA, shares insights on key topics, including:
- How the structured notes business is becoming more digitized.
- Why a broader range of market participants are now issuing these products.
- How new participants are breaking into the market.
- The necessary technology to optimally operate a structured products business.
- The outlook for the market.
