Structured products

Structured products are synthetic investment instruments specially created to meet specific needs that cannot be met from the standardized financial instruments available in the markets. These products are created through the process of financial engineering, i.e. by combining underlyings like shares, bonds, indices or commodities with derivatives. Examples of Structured products are :


IRD:
Interest Swaps, Swaptions, FRA’s, Caps and Floors, Inflation Swaps, and Bullet Payments.


FX:
Foreign Exchange Swaps, Spots, Forwards, and FX Options.


Credit:
Single-name Credit Default Swaps, Credit Default Swap Indices and Baskets.


Equity:
Equity Swaps, Equity Options, Variance Swaps, and Total Return Swaps.

The 'Structured Products Group' inside an Investment Bank develops new products and tailors customized solutions to satisfy specific and sophisticated client requirements. Example deals: Oil monetization for a Petrochemical company, Securitizing ticketing receivables for an Airline.