Structured products provider Marex expects market uncertainty and elevated volatility to drive demand for structured notes with capital protection.
This is even as the firm takes steps to help clients, caught out by sharp market volatility, to restructure their existing notes, said Franck Fayard, head of Marex Financial Products for the Asia-Pacific.
Nasdaq-listed Marex is a global financial-services platform providing liquidity, market access and infrastructure services to clients in the energy, commodities and financial markets. Its financial products division has to date structured more than US$30 billion worth of investment notes, comprising over 15,000 products linked to all asset classes.
It was among the first to issue notes linked to iShares Bitcoin Trust Exchange-Traded Fund (ETF), BlackRock’s Bitcoin ETF, when it began trading in January 2024, for instance.
Franck Fayard, Head of Marex Financial Products, APAC, said the business in Asia is “growing very fast”, thanks to private clients’ familiarity with and penchant for structured products linked to foreign exchange (FX), stocks and equity indices, among others. “Investors in Hong Kong and Singapore are extremely sophisticated when it comes to structured products, especially in FX. Asian investors like to transact; they don’t like complex products. When they are comfortable with the product or strategy, they can take on leverage with full conviction. But they really have to understand the product.”
Read the full article here
