There are many ways to start a career in structured products, and a variety of different views of what are good products. In a series of interviews, SRP asks market practitioners to reveal their thoughts about the market and the path they have taken to become part of it.
David Stuff, chief executive at Cube Investing in London answers the questions.
What sells better, protected or non-protected products?
Non protected.
What are the prospects in your market for the next 12 months?
Very good.
What was your first job?
Share centre in Oxford Street.
What subject did you study in higher education?
Economics
Are structured products complex investments?
Some are. Some are not. Most are simpler than they seem.
What would encourage more institutions to use structured products?
Listing central clearing and multiple market makers?
What is the biggest danger?
Exploitive margins in offshore products.
What would encourage more retail business?
The UK Financial Conduct Authority should relax the requirement that the issuer monitors who buys the product and allow suitability to be determined by the distributor.
Why is there no listed market in the UK?
The requirement for issuers to know who has bought the product means that listed products cannot work.
Will Priips Kid help?
No. In its current form, it is a useless document that no investor will use. But it has shown that it is possible to compare structured products with other investments
What is the main benefit of buying a structured products?
Better risk adjusted returns.
Do you buy structured products, if so, which type do you prefer?
Yes. My SIPP is entirely invested in defensive target return products through a managed portfolio service.
Which is the best structured products market?
Private banks.
What's the best structured product you have ever seen?
Simple defensive FTSE autocalls are hard to beat.
Bicycle or taxi?
Bike
Related stories: