Document Centre

A short introduction into Structured Products, if you would like a more indepth presentation please contact us as we offer a full training programme.

We’re often asked for short-term structured products and generally we suggest investment options that may have longer terms – although often still with the possibility of early auto-calls to “lock-in” gains. The reason for this approach may not always seem apparent…

An Autocall – it is a popular design, it has a clear strategy and our “ How it Works” shows  just how simple it is. But let’s take go a step further and look at the building blocks which enable this simple design to deliver such a super product.

An auto-callable (or ‘kick-out’) product is a fixed term investment which can automatically mature prior to the scheduled maturity date if certain pre-defined conditions are met.

An income autocall product is a structure based around the classic autocall style (othewise known as ‘kick out’), which provides the opportunity for regular income payments across a fixed term.

When you spend time reviewing and assessing past and present structured products, you may find that some investment banks seem to be happy to offer a variety of products which look “ too good to be true” – and from the feedback we get from advisers, turn out to be just that.

In the financial crisis, many highly geared banks with a lot of “non-equity” in their capital structures were left looking very weak because losses quickly ate into their relatively thin equity cushions.

There are two key determinants in pricing structured products, the underlying interest rate that drives the investment and the price of the options that are bought and/or sold to deliver the returns offered.

The Callable Deposit has been created for the UK market, this document takes you through how it work with possible scenarios of the outcomes.

Taking you through the ‘Callable’ feature including example scenarios.