A white paper by Numerix recently examined how structured product issuers can continue developing more sophisticated payoff structures without increasing operational and risk management challenges.
Demand for structured products is driving a new wave of payoff innovation, but issuers must ensure increasingly complex products remain transparent, scalable and well governed, according to a recent white paper from Numerix. The paper argued that product innovation should be supported by robust operational processes The paper, Structured products: Innovative payoff designs and managing complexity , explored how higher interest rates, market volatility and growing demand for defined out