Defensive strategies by different means: the divergence in the German and Swiss markets
Transparency and simplicity remain a key theme for structured product providers in Germany and Switzerland, where even high-net-worth-individual accounts at private banks want simple payouts and low counterparty risk. By Michael Marray
The German and Swiss structured product markets continue to diverge from one another, and providers looking to play in both markets are having to devise two very different strategies.
Germany has moved in the direction of a listed market, with a proliferation of short-term trading products aimed at self-directed investors with brokerage accounts, alongside products launched with a marketing campaign and distributed via wealth management advisers.
In the Swiss market, tailored products are
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