We look at structured products in the US market linked to underlyings that have exhibited poor performance during 2023.
More than 75% of live products featuring the Swiss share are more than 10% away from crossing their Knock-In barriers; 55% at more than 20% from breaching them.
Almost 70% of live products featuring the Hang Seng China Enterprises Index (HSCEI) are in safe territory and far from breaching their defensive barriers.
Structurers and traders at investment banks involved in structured products are constantly assessing pricing and risk management as part of the issuance program they are involved in.
The US structured product market has seen very strong growth in recent years.
The US market represents almost 25% of all structured products outstanding globally in 2023.
Standard option pricing models in finance, like the Black-Scholes model, would suggest that call returns are positive, and that call returns should be higher, the higher the strike of the option.
In October 2022, the Financial Conduct Authority in the UK (FCA) released its consultation paper on Sustainability Disclosure Requirements (SDRs) and sustainable investment labels.
The use of strategy and custom indices has had a long and rich history within retail structured products markets for many years.