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STRUCTURED PRODUCTS

The Process at a Structured Product Issuer

STRUCTURING

BOND FINANCING

The Process at a ABS Product Issuer

 SECURITISATION

Structured Products provide investors with exposure to an Underlying Asset in a form that typically cannot be achieved through direct investment in the Underlying Asset.
The payoff formula of a Structured Product typically has 3 components:
1. The Underlying Asset;
2. The Performance Component;
3. The Protection Component.
Flexibility and a tailored approach to investing are the key advantages of Structured Products. These vehicles can enable investors:
1. To meet diverse individual goals and financial preferences.
2. To adapt their portfolio to specific market conditions.

Tools which can provide for:
Diversification
- Access hard-to-reach Underlying Assets;
- Gain or hedge exposure using specific asset classes that might not be accessible with traditional investment vehicles;
- Access to different investment strategies;
- Gain greater diversification of existing portfolio exposure and positions.
Yield Enhancement:
- Potentially enhance an investor’s portfolio returns;
- Potentially improve an investor’s risk/reward profile;
Wealth Preservation:
- The diversification and yield enhancement features can be combined with an element of principal protection typically not available with direct investment in an underlying asset.
Transparency:
All Structured Products have the following features in common:
- Defined Maturity and Underlying;
- A Level of Principal Protection (ranging from 100% to 0%);
- A Payoff Formula at Maturity.
STRUCTURED PRODUCTS CAN BE DESIGNED,  TO PERFORM THEREFORE ACROSS A WIDE RANGE OF MARKET CONDITIONS BY CHOOSING THE APPROPRIATE PERFORMANCE COMPONENT.  ​

"Customize your exposure"

We have pooled the very best of our engineering, coverage and structuring talent to work together to analyze clients’ needs and objectives, determine risks as well as address the evolving regulatory environment. Based on a client-oriented, cross-asset approach and customized services, we deliver a comprehensive range of solutions across asset classes, from vanilla option combinations to complex payoffs. We search of new ways to meet continually evolving objectives
Our solutions can be tailored to meet a variety of financial objectives and to target a specific investment profile, which makes them a natural alternative to traditional investments.

Securitisation is a flexible, efficient and lower-cost way of raising capital. 

Briefly, securitisation is a type of structured financing in which a pool of financial assets with predictable cash flows or rights to future income streams is transferred from an originating company (the "Originator") to a "Special Purpose Vehicle" (the "SPV"). 

This SPV subsequently issues debt packages backed by the assets transferred and payments derived from these underlying assets purchased with the proceeds of the issuance.

The Luxembourg Securitisation Law offers an attractive regulatory framework for setting up workable securitisation structures in Luxembourg at reasonable cost and high degree of expertise of market players (banks, corporate service providers, auditors, etc.).

We consider one of our roles is to be a key driver in promoting a better understanding of the securitisation and structured finance industry, emphasising both the benefits and the potential pitfalls, as well as developing ideas as to the future direction of the industry with the possibility to use this instrument in the best way for own needs of funding or distribution.

"Repackaging of assets" 

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Trading asset backed securities

The process for issuing asset-backed securities in the primary market is similar to that of issuing other securities, such as corporate bonds. Publicly issued asset-backed securities have to satisfy standard of the Stock Exchange registration and disclosure requirements, and have to file periodic financial statements.

The Process of trading asset-backed securities in the secondary market is similar to that of trading corporate bonds, and also to some extent, mortgage-backed securities usually, most of the trading is done in over-the-counter markets.

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