ASSET ALLOCATION AND STRUCTURED PRODUCTS / Jade MULLER / 2020

Titre : ASSET ALLOCATION AND STRUCTURED PRODUCTS : Structured products versus derivatives in a volatile environment Type de document : Mémoire Auteurs : Jade MULLER, Auteur Année de publication : 2020 Importance : 26 p. Note générale : Pour accéder aux fichiers PDF, merci de vous identifier sur le catalogue avec votre compte Office 365 via le bouton CONNEXION en haut de page. Langues : Anglais (eng) Mots-clés : Management ACTIF ; ENVIRONNEMENT ECONOMIQUE ; FINANCE D'ENTREPRISE Résumé : Structured products were first created for investors unsatisfied by classical assets and searching for new ways of investing through diversification. In nowadays financial markets, uncertainty weighs in every investing decision. Factors such as strong volatility on stocks during certain periods makes it difficult for investors to get to tailor-made solutions and increase their capital while managing the risks brought by their seek for performance. Thanks to their dual structure - which we will explain later in the definition of the first axis - structured products offer solutions which can easily be adapted to uncertain periods we face on markets such as the current sanitary crisis with the Covid-19. Highly adjustable to any deal horizon, risk or underlying asset, structured products can be personalized according to any investor needs and the economic context. For instance, in the low rate environment – see Appendixes A and B - in which we are evolving today, dealing with structured products may be interesting from the investor point of view who seeks for bond investments and also wants to get high returns. Indeed, investing in low risks products such as T-bonds is less attractive than other assets like derivative products which have what we call a high leverage effect and can bring some performance but that are also a lot riskier. Therefore, one might think that having a mix of these two could, on one hand, manage the risks of the position, and on another hand bring some level of performance. This would in fact, make structured products an interesting investment alternative for this type of investors. The main objective of this Seminar Paper will be to bring all the elements needed to demonstrate how structured products are an interesting choice for investors willing to invest in derivatives to secure their capital and seek higher levels of performance in uncertain markets than with a simple derivative instrument such as futures or vanilla options. We raise the question: “How do structured products prove to be an alternative way of investing in derivatives in an uncertain market?” We will first read what structured products are in general, how they are constructed and work, what makes them attractive or not. We will then deepen our reflexion on that topic by asking ourselves to whom they might be interesting and why, what kind of products could be relevant according to which type of investor. We will get through this with some relevant examples of investments proposed by renown banks. Finally, we will go further and explain how exactly, structured products offer an interesting alliance between performance and capital protection in a volatile environment. Programme : PGE-Rouen Spécialisation : Finance d’Entreprise - Corporate Finance Permalink : https://cataloguelibrary.neoma-bs.fr/index.php?lvl=notice_display&id=531055