Structured products are derivative financial instruments. This means that their value is directly linked to the performance of an underlying asset that has been defined in the product contract. These assets can be of different types which includes stocks, currencies, bonds, credit, interest payments and other assets with fluctuating prices.
- The product is configurable according to the investor risk profile and its return objective.
- Higher returns compared to other products of the same nature.
- The sale of the product is possible at any time during its lifetime.
The pay-off of structured products is configurable according to the risk profile of the investor and their financial objectives. This can be achieved by modifying several elements within its structure. This type of instrument has a conditioned nature because its reimbursement and cash flow depend on the performance and behavior of the underlying asset.