Structured products

Structured products are financial innovations that are issued by a bank and have a term, a coupon and one or more baseline stock references. However, the issuer here commits only conditionally to complete repayment at the nominal value, provided a reference stock or a reference stock basket has not fallen below certain barriers during or at the end of the term.

In light of the current low and in some cases even negative reference-interest level, the coupon/interest amounts are often tax-free and are one of the few asset classes that offer any continuous fixed income at all. However, the purchaser must be aware that they are giving up significant potential rate increases and cannot, with most SP’s, benefit above and beyond the coupon. In turn, in the event of rate decreases they are protected up to an agreed maximum loss amount.

We concentrate mainly on BRC’s (Barrier Reverse Convertibles) (structured products with a coupon) and “Outperformance Certificates,” which make possible one-and-a-half- to two-fold gains via dividend utilization and an upper limit on the potential (CAP).

chameleon asset management ag always works in the client’s interest, ensuring that the sales commission calculated into the product is fully credited to the client by means of net settlement using a more favorable initial value -- or allows a similar product with the same conditions to be noted and posted without fees being included.