Big staff moves in Apac continue, and our new StructrPro tool looks at products linked to Walmart.

Credit Suisse’s co-global head of QIS distribution structuring has relocated to Singapore to take on an expanded role following a reshuffle. Clement Florentin has assumed the newly-created role as Asia ex-Japan head of equity derivatives (EQD) structuring at Credit Suisse.

The move, which is effective from this month and sees Florentin relocating to Singapore from Hong Kong SAR, is the result of another reshuffle within the global trading solutions unit at Credit Suisse Investment Bank, SRP has learnt. 

Another SRP exclusive: Jun Teck Yap, a treasury veteran, has been appointed as regional head of investment & structured products at the second largest Singaporean bank by assets, SRP has confirmed. Yap who has served for 17 years at OCBC Bank is now responsible for Singapore, Malaysia, Hong Kong and Indonesia. He had held the role within the global treasury unit on an interim basis following Say Ping New's departure in March 2022.  Yap reports to Kenneth Lai, executive vice president, head of global treasury at OCBC Bank in Singapore since October 2020.

Maturing products linked to US multinational retail corporation Walmart delivered an average return of 20.56% pa and none returning a loss

The Hong Kong Exchanges and Clearing has seen new listings of derivative warrants (DWs) and callable bull/bear certificates (CBBCs) in H1 22 hit their lowest levels in two years, leading to a fall of listing revenue at HKEX. A total of 6,157 DWs and 19,413 CBBCs went listed on Hong Kong Exchanges and Clearing from a group of 16 issuers in H1 22, a decrease of 25.3% and 7.6%, year-on-year (YoY) respectively. The figures dropped 27% and 10.9%, respectively, compared with the peak in listings recorded six months ago. No new listing of inline warrants (IWs), which allow investors to generate returns during range-bound market, has been recorded since June 2021. There are currently 19 IWs with positive outstanding amount on the exchange issued by HSBC.

BNP Paribas has issued a new series of Airbag Cash Collect Certificates in Italy. The publicly offered products, 15 in total, are linked to a worst-of basket comprising a mixture of Italian, European and American shares. The certificates offer potential annual memory coupons of between 8.40% and 26.80% – paid quarterly – on a maturity of three years.

Thanks to the airbag feature at maturity, the certificate will generate a better performance, albeit negative, in the event of a negative performance of any of the underlying shares beyond the capital protection barrier.

Over in the US, Prudential Financial announced that its FlexGuard indexed annuity has racked up US$10 billion total sales since its launch in 2020, making it the fastest-growing indexed variable annuity in the US market, according to data from the Secure Retirement Institute (SRI). The product offers a variety of index-linked investment strategies, including some with the potential to accelerate gains above and beyond the index return when certain targets are met, while also providing a buffer to help limit downside losses during periods of market volatility.

Maturing products linked to US multinational retail corporation Walmart delivered an average return of 20.56% pa and none returning a loss. Walmart delivered strong top-line growth globally in the second quarter of 2022. Despite these positive results, the company’s share price, which closed at $121.58 on 30 June, fell by 19.5% during the quarter.

With the help of SRP’s StructrPro tool, we analysed how structured products linked to the Walmart stock performed in the US market.

Our sample comprises 74 products, of which 39 are still live and 35 have matured. Sixteen of the reviewed products are tied to the Walmart share on its own, with the remaining structures linked to a worst-of basket.

Eight live products currently provide a gain. Of these, Incapital’s Trigger Autocallable Contingent Yield Notes (90276BKQ5) on a worst-of basket also comprising the common stocks of D.R Horton and Charles Schwab Corporation, is the best performer. If it expired today (18 August), the three-year registered note, which was issued on the paper of UBS and sold $2.8m at inception, would return 116.65% to investors.

Thirty-one of the live products are showing a mark to market loss because of the recent decline in the stock price (-6.44% on average). Credit Suisse’s Contingent Coupon Autocallable Yield Notes (22553P2C2), which collected $8.4m, is currently trading at 30.75%, well below its European barrier of 60%, although it has until 13 November 2024 to recover.

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