Structured products like CLNs, AMCs and sometimes Trackers are financially engineered to enable highly customized risk-return objectives.

This goal is achieved by taking a traditional security and replace the usual payment features, like the periodic coupons and final principal with non-traditional payoffs derived not from the issuer's own cash flow, but from the performance of one or more of the underlying assets. Structured products have initially been designed in Europe and have gained acceptability in the USA. Here they are frequently offered as SEC-registered products. This means that they are accessible to retail investors in the same way as stocks, bonds, ETFs or mutual funds. Their ability to offer customized exposure to otherwise hard-to-reach asset classes and subclasses make structured products an additional traditional component of portfolios with diversification.

Elite service providers for financial products of this second generation open the market for structured products. Structured products are extremely valuable to investors but let's face it they're expensive not transparent and complicated the conventional issuance directly effects the balance sheets and issue a risk increases this results in high overheads and finally in high product costs.


IMF Publication 2015

The more structured products issued the bigger the negative effect and so structured products become expensive non transparent and complicated

Structured products can be modular comprehensive and high performing and clients have the ability to structure and to issue them individually. This is why this absolutely new strategy is based on individual off balance sheet issuance vehicles, set up to empower the sector with oversight and flexible products at the lowest cost.