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.
Yann Robbiola, president, partner, LS Advisers, answers the questions.
What sells better, protected or non-protected products?
We have a strong belief within our investment committee that we are here to preserve the assets that our clients are giving us to manage. Hence when looking at structured products, our natural inclination is to go for protected products. With the current level of long term rates, it is quite difficult to obtain interesting products with 100% capital protection, but if you look at partially capital protected products with low European barriers (50%) we can engineer interesting products, especially after a market selloff.
What are the prospects in your market for the next 12 months?
For our European business, a strong demand for our IFA platform via Luxembourg Insurance Life wrappers, especially in France.
In Africa we have still a long road to go to promote asset management and structured products, but with our strong focus on education, we will get there shortly.
What was your first job?
Cashier at McDonald's in La Defense. A great and fascinating experience. Food for thought!
What subject did you study in higher education?
Corporate and Market Finance. The way this is taught in French University is really theoretical and with a lot of mathematics, so I was glad to start my career at BNP Paribas to see what economy really looks like.
Are structured products complex investments?
Complex yes, but not complicated. There is a lot of building bricks within a structured product: rates, credit spread, correlation, volatility, the underlying etc. One as to understand really all the components before mastering the structured products world. That's why education is so important when advising them.
What is the main benefit of buying structured products?
Risk control and being able to monetize your view on the market (e.g. sell volatility, or the market downside for example, depending on your view of course).
Do you buy structured products, if so, which type do you prefer?
Yes both personally and for our asset management business. My favorite? Autocalls on indices with low European barrier of protection after a market selloff! A great history of positive returns for 15 years if you time it right....
Which is the best structured products market?
By far, the Swiss one, in terms of type of products, competition, technology etc.
Bicycle or taxi?
Bicycle. Thanks to Anne Hidalgo (Mayor of Paris), you can't go very far in Paris in a taxi these days, unless you have two hours to waste.
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Bart Van Leemput, KBC Asset Management