Hello Community!
Structured products are increasingly being used by investors to express targeted market views offering tailored risk/return profiles, potential downside protection, and exposure to assets or strategies that may be harder to access directly. As highlighted in this piece from Julius Baer, these instruments combine traditional assets with derivatives to create highly customised outcomes aligned to specific market scenarios and investor objectives.
But with flexibility comes complexity. Understanding payoff structures, issuer risk, liquidity constraints, and how these products behave in different market conditions is critical. For private markets and institutional investors in particular, structured solutions can play a role in diversification and income generation but only where there is a clear grasp of the underlying mechanics and risks.
Worth a read for anyone exploring more sophisticated portfolio construction tools:
https://www.juliusbaer.com/en/insights/market-insights/how-to-invest/structured-products-explained-how-they-work-benefits-and-risks/
Are you seeing increased adoption of structured products in private markets or institutional portfolios and where do they add the most value today?
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Aya Pariy
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