2019 was a year of stagnation in terms of growth for the Mexican economy with about 0.1% contraction in the first three quarters. Despite minimal signs of a recovery the structured products market retains its good health with product issuance and sales growing two-fold.
Five hundred and seventy-one products from six different providers and with a combined sales volume of MXN34 billion (USD1.9 billion) struck in Mexico in January.
Slowly but surely structured products continue to expand their footprint across markets and regions with a number of new advisors becoming advocates of these products as an alternative to existing investments and a way to get higher yields while protecting capital.
Sixty-five structured retail products with an estimated sales volume of BRL1.3 billion (US$300 million) struck in Brazil during the last quarter of 2019, bringing the total number of issuances for the year to 845.
Five hundred and seventy products from six different providers and with an aggregated sales volume MXN29.8 billion (US$1.6 billion) had a strike date in December, according to the SRP Mexico database.
Six hundred and seventeen products from seven different distributors and worth a combined MXN41.8 billion (US$2.1 billion) struck in November in Mexico. The figures represent an increase of approximately 26% in terms of sales volume compared to the previous month.
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.