FAQs Archive - Page 2 of 6 - YiELDEN Structured Products & Certificates in Europe & Switzerland. Comprehensive comparison tool and much more. Free Databases.

Q: How can I assess the credit risk associated with a structured product?

The credit risk of a structured product is largely determined by the issuer's creditworthiness. Investors can assess credit risk by reviewing the issuer's credit ratings, financial statements, and market reputation. It's important to note that a higher credit risk may lead to a higher potential return but also increases the likelihood of loss.

Q: Are there any structured products specifically designed for risk-averse investors?

Yes, capital protection products are designed for risk-averse investors, as they aim to protect a portion or the entirety of the invested capital while still offering potential returns based on the performance of the underlying assets.

Q: What is a barrier option in the context of structured products?

A barrier option is a type of derivative used in some structured products, where the option's payoff is triggered or canceled if the underlying asset's price reaches a predetermined barrier level. Barrier options can be used to create customized risk-return profiles in structured products.

Q: How do I compare different structured products?

When comparing structured products, consider factors like the underlying assets, product structure, payoff profile, fees, issuer creditworthiness, and regulatory protections. Comparing Key Information Documents (KIDs) and termsheets can provide valuable insights into the products' features and risks.

Q: What are the main factors that influence the performance of structured products?

The performance of structured products is influenced by factors such as the underlying assets' performance, market volatility, interest rates, credit risk, and issuer-specific factors.

Q: Can I combine structured products with traditional investments in my portfolio?

Yes, structured products can be combined with traditional investments like stocks, bonds, and mutual funds to enhance portfolio diversification and potentially achieve specific investment objectives.

Q: What is an autocallable structured product?

An autocallable structured product is a type of callable product that can be automatically terminated by the issuer if the underlying asset(s) reach a predetermined level on a specific observation date. This may result in the investor receiving their capital and a predefined return earlier than the product's maturity.

Q: What is the role of a market maker in structured products?

A market maker is a financial institution that quotes both buy and sell prices for a structured product, facilitating liquidity and secondary market trading. Market makers can help investors sell their structured products before maturity, but the prices they offer may be subject to market conditions and the product's liquidity.

Q: What is a payoff profile in the context of structured products?

The payoff profile describes the potential returns of a structured product based on the performance of the underlying assets. The profile can help investors understand the product's risk-reward characteristics and make informed investment decisions.

Q: Can I invest in structured products denominated in different currencies?

Yes, structured products can be denominated in various currencies, allowing investors to gain exposure to foreign exchange rates. However, this comes with additional currency risk, which can impact the product's returns.

How can I assess the credit risk associated with a structured product?

Are there any structured products specifically designed for risk-averse investors?

What is a barrier option in the context of structured products?

How do I compare different structured products?

What are the main factors that influence the performance of structured products?

Can I combine structured products with traditional investments in my portfolio?

What is an autocallable structured product?

What is the role of a market maker in structured products?

What is a payoff profile in the context of structured products?

Can I invest in structured products denominated in different currencies?

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