There are many ways to start a career in structured products, and a variety of different views of what are good products. In a series of interviews, SRP asks market practitioners to reveal their thoughts about the market and the path they have taken to become part of it.
Peter De Clercq, chief executive officer at Quantessence, answers the questions.
What sells better, protected or non-protected products?
In structured products, protection is always a plus, even if it is partial.
What are the prospects in your market for the next 12 months?
We see tremendous appetite for iCPPI-based products in Europe. Insurers and retail banks have identified the demand and are attracted by the sustainable revenues. Previously, they hesitated because of operations. Now, we are talking to many institutions who have discovered that we can make the process painless and we are frankly overwhelmed by the demand for this new generation of products.
What was your first job?
Government bond trader. The first month was actually on Eurobonds denominated in Luxemburg francs (laughs), but the following month I moved on to government bonds and derivatives.
What subject did you study in higher education?
MBA. Before that I had finished a Master's degree in languages.
Are structured products complex investments?
Well, yes, almost inevitably. But we must avoid making them too complex and we have to make it our mission to explain them clearly. That's what I like about iCPPI: no complex derivatives, What You See Is What You Get.
What is the main benefit of buying structured products?
The ability to isolate the risks you want to take from those you want to avoid.
Do you buy structured products, if so, which type do you prefer?
When I retire, I will put my savings in a decumulation iCPPI product. I hope they will sell them in the country where I retire. Hopefully in the Bahamas, but it's more likely I'll end up in Belgium.
Which is the best structured products market?
Belgium. It's a big market and it has made enormous progress towards simplification.
What's the best structured product you have ever seen?
iCPPI-products. That's precisely why I decided to work with them. I had first-hand experience of the sustainable revenues, while I really liked their transparency and advantages for the end customer.
Bicycle or taxi?
The bike of course, unless it rains... In that case, I'll go for the taxi, I'd choose the "protected product" after all...
Related stories:
Andre Buck, Six Swiss Exchange
Tom Karlsson, Susquenna International Group
Antoine Porcheret, BNP Paribas