P&L Report Card
Structured products have become mainstream with the explosion in service providers offering second generation derivatives and other yield enhancing products. Most banks now offer a reasonable range of structured products and more and more are building out the ability to create your own basket. Mainly it has to be said, we are seeing this in the FX space – we are primarily a currency and derivatives magazine after all – but there are also some looking more closely at multi-asset structured notes.
Clearly any bank with a healthy private client franchise is going to score well here and indeed UBS’s structured products sit very well within Neo. Credit Suisse, likewise, continues to keep pace and users like its Index functionality, which two years ago added basket building capabilities, something Barclays, has had for some time.
JP Morgan and Deutsche Bank are making some interesting moves in the basket creation space, which are well worth monitoring and, inevitably, BNP Paribas again scores well here.
Winner – UBS
Our winner, though, and again this is a multi-repeat, continues to set the standard. With its strong private client and wealth management franchise, UBS has always been a strong player in the structured products business and Neo is made for this market – as proven by the bank moving its more than 1.3 million wealth users onto the platform.
The bank uses graphics and analytics well and with structured products being so much about sharing ideas and then nuancing them, well, it’s like Neo was built for this business.
The bank’s derivatives offering, headlined by its offering in actively managed certificates, (available with an FX hedger), remains hugely impressive and is backed up with a series of creation and valuation tools. The AMC functionality continues to be enhanced on Neo, with increasing flexibility over how clients can view the details of the certificates and value them.
Over the past year the bank has introduced AMC bonds, so as well as the equity trader building a basket to be securitised, the bond trader can now do so as well. It has also developed dynamic strategies that are effectively an automated algo trading solution. The client can select a strategy and then invest in it and the algo manages the money according to the parameters of the strategy
In a broader context, the pre-trade analytics are predictive and execution tools are provided to add the extra layer of sophistication that epitomises Neo. The bank remains a powerhouse in exchange traded products and with full term sheet functionality (available white labelled to the customer’s brand of course), UBS’s offering highlights its traditional strength and experience in this important area.