The Spanish bank has gone live on EQConnect, a multi-issuer platform developed by FinIQ, as part of its expansion targeting private banks in Asia.

The platform allows wealth managers to request for quotes from major market makers in the equity-linked space for structured products such as equity-linked notes, range accruals, fixed coupon notes, accumulators and decumulators, while enabling optional integration with other core banking systems.

As part of the Asian expansion we continue to connect to clients and platforms in the region - Daniel Hernandez, BBVA

“As part of the Asian expansion we continue to connect to clients and platforms in the region,” Daniel Hernandez (pictured), head of e-connectivity sales at BBVA, told SRP. “We ended 2022 going live in EQConnect where we are now providing a number of the platform's customers with a full end to end digital offer, including click and trade and price discovery on all equity Asian payoffs.”  

Over 2023 the investment bank will broaden its offerings in Asia to digital cross asset structured products covering, equity, FX and credit, according to Hernandez. The partnership comes after the Spanish bank onboarded Contineo, a Hong Kong-based multi-issuer platform, in September 2022.

Thailand SCB Wealth CIO highlights structured notes

The wealth management arm of Siam Commercial Bank has received ‘good response’ from clients for its new products launched in 2022, featuring structured products linked to equity with knock-in/knock-out (KIKO) and to Thai overnight repurchase rate (Thor), stated the bank in its SCB Wealth Holistic Experts conference held on 25 January.

The equity-linked KIKO products traded by the wealth manger posted a 54% increase year-on-year (YoY) in 2022, accounting for the largest market share in Thailand, according to Yunyong Thaicharoen (right), senior executive vice president, Chief wholesale banking officer, and senior executive vice president, chief wealth banking officer at SCB.

In 2023, SCB Wealth will accelerate its development of structured notes that offers downside protection or ESG elements, according to bank. It also recommends foreign fixed income securities, Chinese, Thai and Indonesian stocks on back of China’s opening, Thailand’s tourism recovery and increased domestic spending in Indonesia.

US retail annuity sales top annual sales records set in 2008

Propelled by record-high fixed annuity sales, total annuity sales surged to US$310.6 billion in 2022, a 22% increase from 2021 and 17% higher than the record set in 2008, according to preliminary results from Limra’s US Individual Annuity Sales Survey released on 26 January.

“Investors seeking guaranteed growth and downside protection drove extraordinary fixed annuity sales of US$208 billion, 49% above the record set in 2019,” said Todd Giesing (right), assistant vice president, Limra Annuity Research. “Our forecast suggests that protection products will continue to boost growth in the annuity market for the next several years.”

In Q4 22, total annuity sales were US$87.2 billion, a 39% increase year-on-year. The year of 2022 saw ‘record-breaking sales for fixed-rate deferred, fixed indexed and registered index-linked annuities,’ according to Limra.

New FIA tracks Loomis Sayles gauge

North American Company for Life and Health Insurance has launched a new FIA on 24 January tracking the Loomis Sayles Managed Futures Index, BlackRock ESG U.S. 5% Index ER and S&P 500 Low Volatility 5% ER Index. The product, North American Secure Horizon Choice, was designed by  Annexus with an aim to offer clients growth and protection for their retirement savings offering shorter five- and seven- year terms.

The Loomis Sayles Managed Futures Index was introduced exclusively by North American Company for Life and Health Insurance to the US annuities market in October 2021, as SRP reported. Goldman Sachs acted as its administrator and calculation agent. Two FIAs had gone live tracking the three indices - the North American Secure Horizon and Secure Horizon Plus annuities.

‘In addition to helping clients grow and protect their savings, the optional 4-in-1 Retirement Benefits Rider available with Secure Horizon Choice enables them to prepare for the four common risks that may derail retirement plans,’ said Rob TeKolste (right), president, Sammons Independent Annuity Group.

UBS updates MVIS play, related ETNs

MarketVector Indexes on 23 January announced a restructuring of the MVIS US Business Development Companies Index, effective after close of trading on June 16, 2023. The Index underlies the ETRACS Quarterly Pay 1.5x Leveraged MVIS BDC Index ETN (exchange-traded note) due June 10, 2050 and the ETRACS MVIS Business Development Companies Index ETN due April 26, 2041, each issued by UBS AG.

The two versions of the index will be available with different weighting schemes. UBS intends to use Version 2 (Weighting scheme: The 4.5% / 20% / 50% capping scheme as described in section 3.2.9 of the index guide) of the index for the ETNs, as required to comply with the continued listing standards of NYSE Arca.

As a result, the new ETNs will be named ETRACS MVIS Business Development Companies Liquid Index ETN and ETRACS Quarterly Pay 1.5x Leveraged MVIS BDC Liquid Index ETN with tickers unchanged.