As part of a new series on volatility, SRP talks to Benedict Peeters (pictured), chief executive of Brussels-based Finvex Group, about the impact of volatility on structured products.
“When you are building a structured product, choices have to be made. Is the investor long or is he short volatility? That very much depends on the type of product he is buying. There are products which will increase in value when volatility is higher, and you have products where it works the other way round. In the secondary market, if volatility increases, this will have a positive effect on the value of the option - Benedict Peeters “The classic capital-protected product which