The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Reaching for the man on the street

Demand for structured medium-term notes, particularly equity linked, has exploded over the past two years. Yet it is retail buyers rather than sophisticated institutional investors who are purchasing these complex products. It’s not just the investor profile that has changed. The route map for the origination and distribution of structured debt is being redrawn too. In the heart of euroland some surprising new players and alliances have emerged to service structured debt’s most important new client: the man on the street. Mike Tims reports

If you had ventured into any of Banque Générale du Luxembourg's 40 branches across the Grand Duchy this summer, as likely as not a glossy poster featuring the symbols of power generation would have caught your eye. "Energize your portfolio!" it urges, with the purchase of Protected Sector Notes 10: Top 15 Utilities. This is the latest in a series of similarly branded and marketed issues that provide investors with principal-protected participation in the gains of an international basket of leading equities in particular sectors.


A few months ago a similar poster for Protected Sector Notes 9: Top 20 Biotech proposed that you "Participate in the biotechnology sector's genetic revolution!". Like their predecessors, Consumer products, Pharmaceuticals, High Tech, Bank Insurance, Retail, Multi-media, PSNs 9 and 10 provide retail investors with participation in the gains of a basket of leading international equities in each sector and at the very least the guarantee of getting your money back.


At the counter, leaflets promoting Banque Générale du Luxembourg's other carefully branded range of equity-linked retail products, including reverse convertibles, are available. Open a copy of the Luxembourg Wort and you will Find advertisements for equity-linked debt products being promoted by most European retail banks.



You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree