Structured Notes: Transforming Risk into Opportunities
In this article, Risk.net leads a discussion with industry representatives, to capture what the current market environment means for traders, issuers, risk managers and investors operating in structured products.
Structured Notes: Transforming Risk into Opportunities
Global markets were hit hard by the COVID-19 pandemic as a result of highly volatile market swings, increased unpredictability, and a slashing of interest rates globally. This drastic change in market dynamics had particular impact on the structured products market.
In this article, Risk.net leads a discussion with industry representatives from Investec Bank, Natixis, Citi and Numerix’s MD of Client Solutions for EMEA, Ilja Faerman to capture what the current market environment means for traders, issuers, risk managers and investors operating in structured products. The panel shares their insights and perspectives on how this market is reacting to today’s trends and challenges.
The article focuses on the following themes and topics:
- How the structured products market is evolving
- Changes in client behavior as the COVID-19 crisis has developed
- What the recent market and pandemic turmoil means for structured products hedging and new issuance
- How traders and risk managers can apply lessons learned from past periods of market stress and adapt to new ways of working
- The structured products market’s increasing reliance on digitization and the growing role of technology in this product arena
We see quite a few regional banks and different jurisdictions entering the structured products market without massive investment on the IT side because they can benefit from new cloud-based technologies.