As we approach the end of 2019, we look at the most active providers of structured products in the Americas and what products they offered throughout the year.
Brazil’s brokerage firm XP Investimentos, one of the leading distributors in of the country’s structured investment products market, has launched Banco XP after receiving an operational license by Banco Central do Brasil in October.
Issuance of structured products on the Mexican market is growing stronger with foregn exchange rates being the main driver of activity and independent range structures finding renewed demand in October.
The Brazilian market is moving from a plain vanilla set up dominated by local banks to a ‘very different and competitive’ market.
Six hundred and eighty-seven products with aggregated sales volume of MXN23.9 billion (US$1.2 billion) had strike dates in September – in line with figures for the previous-month, when the volumes stood at MXN24 billion (from 737 products).
The bank hires structured products veteran to develop new products and expand the ESG offering for its wealth management division in the Americas.
Ninety-two structured retail products worth an estimated BRL6.5 billion (US$1.6 billion) were issued in the third quarter of 2019 in Brazil.
The Mexican structured products market experienced another strong month in August with 736 structures striking – worth a combined MXN24.42 billion (US$1.2 billion) – which adds up to a total of 5,757 products launched over the course of the year.
A total of 878 products worth a combined MXN33.85 billion (US$1.78 billion) struck in Mexico during July, a 34.4% increase on June. The exchange rate of the Mexican peso against the US dollar remained the leading driver of activity: the currency pair was the underlying in 97% of the investment strategies.