FREQUENTLY ASKED QUESTIONS, HELPFUL INFORMATION & GLOSSARY
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Banks attract larger investors by Structuring Attractive Investment Products that guarantee above average levels of return and capital protection – provided that certain terms and conditions are met in the market. For depositing these larger sums for longer periods of time, Investors get issued a Promissory Note, a Contract, from the Bank that governs the investment.
In financial circles these Structured Promissory Notes are simply referred to as Structured Notes.
CashBox structured product solutions are for all seasons
Clients need to invest in all market conditions and there are many views of investment risk. At one end of the spectrum is cash; at the other, more exotic equity markets, commodities or shares. This risk / reward profile may well differ from client to client but they all have the same desire – a good return on their capital and of their capital, no matter what – surely the ideal investment.
In some market conditions, achieving that may be relatively easy, but in others it could be well-nigh impossible. Structured products have a flexibility of design that can make squaring the circle just that bit easier, providing solutions to beat both bulls and bears alike.
A structured product will have a defined objective
– it may be for income, growth, capital protection or any combination thereof. As a fixed term investment, there will be a target date for that objective to be met. The returns offered for any structured product will be a reflection of the risk / reward strategy which in itself will be a reflection of the client’s risk profile.
A structured product can be created in a matter of hours so can snap up opportunities one day that may not exist the next. And no matter what the markets are like, investment opportunities will exist.
There are a number of long established and well proven structures which form the bulk of the structured product market. Straight participation products which can offer maximum capital protection and cash beating returns; Classic Autocalls which can deliver good growth and may return capital before the end of their fixed term; Income products which can provide regular high-level coupons across a fixed term.
Using the component parts of a structured product it is possible to deliver an optimised and bespoke investment solution as and when it is needed.
Innovation is crucial if the industry is to keep up with the ever-changing global market and of course to meet your client’s differing wealth needs. For example, we now have “memory” investments which do not require all underlying links to achieve their predefined levels on the same date to trigger an early maturity. Or, when shares are used as performance links, products which manage the higher risk that shares may have on the final capital return by using the comparatively less volatile performance of an index to determine the risk to capital.
With an extensive secondary market now available, active management of a client’s portfolio can lock-in profits from investments already in the portfolio – or trade in existing risk-aligned notes, where they are attractively priced. Together, the primary and secondary market brings that ideal solution one step closer.
The last few years have seen the wide acceptance of structured products as a choice for many. With a continuing commitment to disclosure, clarity and innovation, the structured product solution is one for all seasons and increasingly forming a key part of an investor’s portfolio.
WHAT DO STRUCTURED NOTES DO FOR THE BANK?
WHAT ARE THE BENEFITS OF STRUCTURED NOTES TO THE INVESTOR?
IS THERE A PLACE FOR WHOLESALE LEVEL NOTES IN MY PORTFOLIO?
An additional feature that allows any previously missed coupons to be paid.
Underlying investment link – normally one or more stock-market indices or equities which are observed by way of options (not invested in directly).
SCRUTINISE THE RISK LEVEL OF THE PRODUCT’S BASKET OF INVESTMENTS
IS THE PAY-OFF SUITABLE
HOW IS MY CAPITAL PROTECTED – IS THE PAY-OFF SUITABLE
PROTECTION BARRIER LEVEL
WHAT ARE THE RISKS
WHO IS IDAD?
WHO SHOULD CONSIDER CASHBOX STRUCTURED NOTES
HOW DOES OUR INVESTMENTS WORK?
THE INVESTMENT PROCESS
It is easy to invest in these ISIN referenced products via your current authorised on-line brokerage or trading platform of choice. Should you need a trading platform there are curated partner platforms on our website for you to choose from.