Reports

Environmental and social governance (ESG) structured products are increasingly included in investment portfolios, and no longer the domain of utopian and visionary fixed income investors seeking a ‘feel good factor’.

The shift towards automation in the structured products space has happened on the back of new regulatory requirements, increasing costs, and a renewed focus on efficiency and transparency. The need to streamline processes in all parts of the market is pushing market participants towards platforms, which are gaining huge traction among buy- and sell-side firms. SRP's Platforms Report, now in its second edition, attempts to shed light on some of the key drivers of electronic trading of structured products, but also some of the challenges that remain. 

SRP’s second France report, in partnership with the French structured product association (AFPDB), provides an analysis of the performance of structured retail products that matured, expired or paid a regular income between the second quarter of 2018 (April 2018) and the first quarter of 2019 (March 2019).

From all the products with performances, more than 78% of the products which matured between 2008 and Q4 2018 delivered a positive return at the end of the investment term (three years on average), according to SRP data.

From all the products with performances, more than 78% of the products which matured between 2008 and Q4 2018 delivered a positive return at the end of the investment term (three years on average), according to SRP data.

A key conclusion from this report is that structured notes have delivered positive returns to investors in the US over the last 12 years. With an average return of 4.36%, which includes the extreme negative performance during the global financial crisis, the results showcase the capacity of structured products to deliver what they promise.

SRP’s inaugural France performance report, done in close partnership with the French structured product association (AFPDB), covers the period from 2007 to the beginning of 2018. It accounts indirectly for the consequences of one major systemic crisis, several regional crises, as well as a fundamental overhaul of the regulatory framework, which culminated with Mifid 2.

Over the last 10 years, structured product providers have developed fully integrated, internet-based services and solutions with a focus on financial performance.