Bloomberg: QIS remains a prominent topic

In an interview with SRP, Chase van der Rhoer (pictured), head of structured products & derivatives at Bloomberg, elaborated how the firm has adapted to the latest market trends in a follow-up of the SRP Europe 2025 Awards where Bloomberg was the recipient of the ‘Best RegTech Provider’ and ‘Best Pricing and Risk Analytics Provider’ accolades.

What’s currently driving market activities?

Chase van der Rhoer: Recently, Bloomberg has seen growing interest from issuers in QIS for structured products. Many client queries have focused on how QIS indices and strategy-based products can be used to provide smarter alternative investment exposure. This trend reflects a broader search for differentiated payoffs and customised investment themes in the structured products space.

QIS-based structures have been a prominent topic, and we expect this theme to continue as investors seek innovative strategies

In discussions with issuers, QIS-based structures have been a prominent topic, and we expect this theme to continue, as investors seek innovative strategies and issuers look to broaden their product offerings with these algorithmic or index-based solutions.       

How has the structured product market evolved since 2024?

Chase van der Rhoer: In 2024, demand for hybrid equity/interest rate structured notes was supported by a favourable market environment that combined strong equity market performance with elevated interest rates. Investors were drawn to these structures as they offered the opportunity to capture equity upside while simultaneously benefiting from higher fixed-income yields.

This allowed investors to diversify return sources within a single product, effectively replacing traditional income strategies. With historically high equity returns and relatively low volatility, hybrid products became an attractive way to access equity-like returns within a familiar bond format, appealing to those seeking both growth and stability.

Similarly, inflation levelled off in 2024 and central banks began to cut rates. This culminated in driving demand for callable zero-coupon products. Investors positioned for further potential rate cuts later in the cycle by locking in higher initial yields.

_{The Bloomberg team at the SRP Europe 2025 awards ceremony in London on 18 March 2025.}

There has been no marked shift in these demand drivers so far in 2025 – interest in innovative, yield-enhancing hybrid and rate-linked products remains robust. That said, broader market trends, such as a renewed focus on outperforming European equity underlyings in early 2025, are influencing issuers’ structured product offerings, alongside the continued appetite for hybrid structures.

How has Bloomberg’s Derivatives Library (DLIB) adapted to such market change in the field of regulatory technology and pricing & risk analytics?

Chase van der Rhoer: Our DLIB Priips solution has been significantly updated since 2024. [It] complies with the latest Regulatory Technical Standards (RTS), offering an extensive methodology toolkit for Priips calculations. Key enhancements include an updated methodology for calculating Category 2 products, adjustments to the Intermediate Holding Period (IHP) assumptions, and added configuration options that allow product manufacturers to adjust performance scenario percentiles.

On the pricing side, notable changes include a new multi-currency stochastic local volatility model for pricing complex FX correlation deals and enhancements to existing hybrid models for greater pricing accuracy. We have also broadened product coverage, particularly for equity/interest rate hybrids and callable structures, to meet rising client demand.

What’s the latest trend you’ve seen in the European market?

Chase van der Rhoer: In 2024 and 2025, structured product markets experienced robust growth, particularly in the Emea region, which saw nearly a 15% year-on-year increase in volumes.

European equities outperformed US equities in early 2025, shifting investor focus toward European underlyings. The European Central Bank's rate cuts in April 2025 further fuelled demand for yield-enhancing products, such as structured notes.

Any challenges you’ve seen?

Chase van der Rhoer: Issuers and investors in the structured products market are navigating an increasingly complex environment characterised by evolving regulatory frameworks, varying cross-jurisdictional compliance requirements, and growing demands for greater transparency and product suitability.

Issuers must balance regulatory adherence with the need to innovate, particularly as client interest grows in more sophisticated solutions such as QIS and hybrid structures. Concurrently, investors face the challenge of managing exposure to market volatility, adapting to shifting interest rate environments, and achieving diversification beyond traditional asset classes, all while maintaining a focus on risk-adjusted returns.

What’s your market outlook?

Chase van der Rhoer: Despite these challenges, the outlook for the structured products market remains positive. Technological innovation, particularly the application of artificial intelligence and advanced data analytics has created new efficiencies in research, product design, and regulatory compliance.

As structured product volumes continue to grow and digitalisation accelerates, firms that utilise technology and adapt quickly to regulatory change will be best placed for success, and Bloomberg’s ongoing enhancements ensure that it remains a critical partner in this evolving marketplace.

^{*This interview has been edited and condensed for length and clarity.}

---

Do you have a confidential story, tip or comment you’d like to share? Contact Us | SRP (structuredretailproducts.com)