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.
Jean-Paul van Oudheusden, chief operations officer (COO) at IEX Group, and one of the pioneers of turbo certificates in the Netherlands, answers the questions.
What sells better, protected or non-protected products?
Non-protected products. Due to low interest rates high net worth individuals rather hold cash than bonds.
What are the prospects in your market for the next 12 months?
The Dutch market is still a leverage product market.
What was your first job?
Junior portfolio manager at ABN Amro Asset Management (1997).
What subject did you study in higher education?
Econometrics. For my Master thesis I made a quantitative model to predict the development of European government bond prices at the time the EMU was founded.
Are structured products complex investments?
Yes, they are. They cannot be offered to all private individuals.
What is the main benefit of buying a structured products?
The risk-return characteristics. Structured products often offer either leverage or downside protection. Both are sought by experienced investors.
Do you buy structured products, if so, which type do you prefer?
Having been at the cradle of the product I still use mainly turbo's, for trading, speculation and investing. I also buy memory coupon notes and equity-linked bonds.
Which is the best structured products market?
Germany.
What's the best structured product you have ever seen?
The RBS 8% minus 3M Euribor Bond. A visionary product with the right timing.
Bicycle or taxi?
In Amsterdam? Bicycle of course!
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