The US investment bank has signed a distribution agreement with a French banking group; Goldman expects autocall maturities to trigger a reversal of the HSCEI performance; The World Bank debuts waste reduction-linked bond; and more.
Crédit Commercial de France (CCF) has signed an agreement to distribute structured products to retail investors issued by Morgan Stanley.
CCF embarked on a new chapter in its history on 1 January 2024 with a focus on wealth and personalized service tailored to individuals and professionals, emphasizing excellence in relationships, expertise and simplicity
As announced by the bank's CEO Niccolo Ubertalli (pictured) in January, CCF is expanding its range of solutions to support clients in 'managing their accounts, projects and wealth by partnering with top market players'.
Morgan Stanley has over 1,200 live products in France worth an estimated US$4.5 billion which have been sold by a pool of 22 distribution partners. The majority of the products issued by the US investment bank in France are autocall structures (935 products/US$3.3 billion), followed by barrier reverse convertibles (546 peroducts/US$1.5 billion) as well as digital structures (70 products/US$298m), capped calls (26 products/US$276m) and twin wins (eight products/US$160m).
CCF said on a statement that the new agreement will allow CCF to expand and broaden its selection of structured product issuers and diversify the types of products offered. The first non-public product launched on the back of the collaboration was launched on 19 March 2024.
'CCF embarked on a new chapter in its history on 1 January 2024 with a focus on wealth and personalized service tailored to individuals and professionals, emphasizing excellence in relationships, expertise and simplicity,' said a CCF spokesperson.
Singapore brokerage launches online structured notes
Tiger Brokers, a licensed online brokerage firm based in Singapore, has launched a new feature on its trading app that offers a one-stop hub for high-net-worth clients investing in structured note products.
The brokerage firm is targeting a growing number of investors seeking for alternative investment options that 'offer steady and predictable cash flows'.
However, they are often underserved by traditional financial services that impose high fees and minimum investment requirements, making access to quality investment products more difficult, according to Ian Leong (right), chief executive officer, Tiger Brokers (Singapore).
'As a technology-first company, we are constantly developing and looking for ways to harness our digital capabilities to deliver tools to benefit our users and creating access to tools only previously available through traditional financial institutions," he said.
Tiger Brokers says its Fixed Coupon Notes (FCN) offering removes high purchase threshold restrictions and eliminates' the tedious, lengthy processes involved in opening a private bank account'.
Available directly on the Tiger platform, FCN is supported by well-known financial institutions and offers a variety of options for tailored investment strategies with instant quotes.
Goldman expects HK stocks boosted by maturing ELS
The recent rally in Hong Kong-listed Chinese equities could be bolstered from maturing structured notes tied to these assets in South Korean, according to Goldman Sachs Group Inc.
Bloomberg reported earlier this week that a Goldman trading desk note noted that a gain of just about 3% will take the Hang Seng China Enterprises Index to the key 7,000 level, 'where a large chunk of knockout barriers for Korean structured products is concentrated'.
'Hitting those levels may force dealers to cover short positions to hedge against more upside risks,' said the Goldman trader.
According to the note, about US$2.2 billion notional of such notes will expire in May and June.
Korean banks and brokerages have been in the limelight after selling billions of dollars’ worth of equity-linked securities (ELS) at the peak of Hong Kong’s stock market in early 2021.The potential scenario forecasted by Goldman desk signals a reversal from what was being expected earlier this year, when Korean ELS were seen as exacerbating losses in Hong Kong-listed Chinese stocks.
The struggling HSCEI gauge has rebounded about 36% from a January low, on the back of a combination of policy support, cheap valuations and foreign inflows.
Euronext releases new ‘Invest in France’ index family
Euronext has announced the launch of the “Invest in France” index family, a new series of indices aimed at highlighting international companies that are at the forefront of economic advancements in France, supporting the country’s economic appeal.
The new index family aims to provide investors with exposure to listed international companies that have been identified with the support of Business France as contributing to the French employment landscape by fostering job opportunities.
Business France is the French national development agency, which plays a pivotal role in strengthening the country’s economic attractiveness through tailored support and guidance to international businesses seeking to establish and grow their presence in France.
In 2023, Business France recorded 1,815 investment projects in France, coming from 56 different countries, and expected to create or maintain 59,254 jobs over the next three years.
Stéphane Boujnah (right), CEO and chairman of the managing board, Euronext, said: 'Euronext reaffirms its dedication to developing innovative financial instruments that enable investors to support the real economy.'
US financial advisor builds up on structured note adoption
Rick Harbus (right), an investment fiduciary and partner at HBW Advisory, has introduced structured notes to its client offering.
Harbus' method involves a tiered investment strategy that balances short-term, moderate-risk investments with traditional market instruments for long-term, higher-risk opportunities. This approach not only maximises income generation with reduced capital but also significantly mitigates risk.
'Our use of structured notes is tailored to ensure clients achieve their financial goals with optimal security and efficiency, making high returns more accessible,' said Harbus, adding that structured products are helping the company 'setting a new standard in investment strategies and enhancing client wealth'.
'Integrating structured notes into our investment offerings has revolutionized the way we manage risk and generate returns for our clients,' he said.
Since the introduction of structured notes into his practice in November 2023, Harbus has witnessed an unprecedented growth in managed assets and boasts the highest average account value per client at HBW Advisory.
To support this rapid expansion and continue providing choice to its clients, Harbus has expanded its team with four new investment advisors including Kyra King, Richard Young, Andrea Young and Roy Edwards Van Muyen.
'The expansion of our team is a testament to our commitment to serving our clients with the utmost dedication and expertise,' he said, adding that the strategic use of structured notes within a client-first approach will ensure that HBW Advisory clients receive 'the most advanced and effective financial advice available'.
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