New VIX indices, funds of structured products, market reviews, and more were covered by SRP’s news team last week.
US options exchange Cboe Global Markets is seeking to leverage new indices under the VIX lens to expand the structured products market beyond the OTC space.
Cboe had received a substantial number of requests to leverage the VIX methodology to provide an 'apples to apples' comparison
Developed by Cboe Labs and administered by Cboe Global Indices, the Cboe 20+ Year Treasury Bond ETF Volatility Basis Point Index (VIXTLT Index), expands the exchange’s growing volatility index suite which now includes more than 450 derivatives-based indices, covering a range of strategy benchmarks and asset classes.
Cboe had received a substantial number of requests to leverage the VIX methodology to provide an 'apples to apples' comparison, according to Rob Hocking senior vice president and head of product innovation at Cboe Global Markets.
The news comes as the VIX, often referred to as Wallstreet’s fear index, today (5 August) reached its highest level since the pandemic market plunge in March 2020.
SRP also reviewed how some of the biggest funds of structured products performed in June, Q2, and the first half of 2024.
Most funds invest in autocalls to achieve their objectives, although some, including the Dutch domiciled Market Stability Fund (MSF), also invest in memory coupon notes. Right now, however, MSF almost always opt for autocallables, because the coupon is considerably higher, and it has been able to reinvest continuously under almost comparable conditions.
“We prefer autocallables because of the higher coupon, but at the same time we’d rather have that they do not autocall,” Ivo van Wees, managing director, risk & compliance, MSF, told SRP.
The Swiss Finanzlab Multi Index Fund has seen strong interest from investors since the start of the year, which led to a more than 20% increase in assets under management (AuM) in Q2 alone.
The fund capitalised on these movements by introducing three new products to the portfolio, including its first product with Citic CLSA while Schroder’s Schroder Special Situations Fund (SSF) Structured Income, which has exposure to 20 autocalls, celebrated its first anniversary with a total return of 8.80% per annum and a volatility of 5.8%.
Gauthey’s licences with the French bank, including dealing in over-the-counter derivatives contracts and securities, became effective on 29 July, the Monetary Authority of Singapore’s registration record showed. In his new role, Gauthey reports to Rishad Schaefer, head of equity sales and structuring for Asia Pacific at Cacib.
Société Générale-FORGE announced the appointment of Stéphanie Cabossioras as general secretary, reporting to the company’s chief executive Jean Marc Stenger; Lucht Probst Associates (LPA) appointed Sebastian Höft as its new global director of sales based in Frankfurt; and Lindsay Wang, formerly manager Americas sales at Solactive in Toronto, joined TMX VettaFi as head of index services for North America.
There were market reviews for Belgium, where single equity indices are making a comeback, Portugal, Spain, and Hong Kong SAR, as well as a comprehensive overview of the European market, which registered a renewed interest for decrement indices in Q1.
FVC’s Tim Mortimer wrote an analysis about the constant proportion portfolio insurance (CPPI) payoff, which has had a long history and is a strategy that has elements in common with both structured products and managed funds.
In 2024, CPPI products have made something of a comeback with issuance volumes already exceeding the total for 2023, according to SRP data.
Continuing our earnings coverage, Amundi’s AuM for structured products reached €42 billion end-June 2024, up 16% year-on-year, while over in Asia, Hang Seng Bank recorded its lowest level of structured products income since the second half of 2021.
Finally, staying in Asia, Marex announced a partnership with Contineo to expand its presence in the region.
Image: pla2na/Adobe Stock.
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