“We are pleased to launch the new Swiss Structured Product Industry Report with additional details on the Swiss market for structured products,” commented SSPA President Markus Pfister.
The SSPA has further improved the current Quarterly Structured Products Industry Report (formerly Value Creation Report) by collecting additional data points as well as additional details and analysis on the most relevant product groups. The SSPA’s new Swiss Structured Product Industry Report, launched for the first quarter of 2022, will provide an even more detailed picture of the Swiss market for structured products. In the first quarter of 2022, the industry generated sales of CHF 58 billion. In the first quarter of 2022, capital protection certificates with coupons generated the highest turnover (CHF 8 billion), followed by mini futures (CHF 8 billion) and reverse convertibles (CHF 7 billion). Leverage products represent the largest share of sales in the first quarter of 2022 (33%), followed by performance optimization products (32%). Capital protection and participation products accounted for 15% and 14% of quarterly sales in Q1 2022, respectively. Equity products remain the dominant asset class at 60% of sales, while fixed income, foreign exchange and commodities account for 18%, 11% and 4% of quarterly sales, respectively. Unlisted products account for 59% of total sales.
The primary market and the secondary market share the total sales equally. The USD accounted for the largest share of sales at 40%. Together with EUR and CHF, the main currencies for structured products, it accounts for 86% of total turnover.
The statistics created by the Boston Consulting Group take into account listed and unlisted products that are created in Switzerland or for Switzerland and sold nationally and internationally. The report was optimized in cooperation with the participating SSPA banks for the first quarter of 2022. The definition of the products considered has been refined, which further restricts the entry of products. New analyzes have also been added, including additional detail views. Due to the reporting optimization, only data from Q1 2022 will be reported in the future. SSPA members Banque Cantonale Vaudoise, Barclays Capital, Credit Suisse, Goldman Sachs, Julius Baer, Leonteq, Raiffeisen Suisse, Société Générale, UBS, Vontobel and Zürcher Kantonalbank participated in the data collection for the first quarter of 2022. They represent the largest part of the Swiss market.
Key developments in the first quarter of 2022:
- Sales of Swiss structured products from key SSPA members reached CHF 58 billion in the first quarter of 2022. In January, total sales were CHF 19 billion, falling to CHF 18 billion in February before rising to CHF 22 billion in March. In the first quarter of 2022, capital protection certificates with coupons generated the highest turnover (CHF 8 billion), followed by mini-futures (CHF 8 billion) and reverse convertibles (CHF 7 billion) .
- Leverage products accounted for 33% of sales in the first quarter of 2022, which corresponds to sales of CHF 19 billion. Equity products were the preferred asset class (78%), EUR the most important currency (47%), 75% of turnover was unlisted and 90% traded on the secondary market.
- Performance optimization products accounted for the second largest share at 32%, with sales amounting to CHF 18 billion. The lion’s share of sales was in equity products (61%) with USD as the main currency (39%), 82% were unlisted and 81% were traded on the primary market.
- In the first quarter of 2022, capital protection products achieved sales of CHF 9 billion, accounting for 15% of sales. Fixed income accounted for the bulk of turnover (80%) and with the USD as the primary currency (90%), 96% was unlisted and 86% traded in the primary market.
- Sales of participation products reached CHF 8 billion, which corresponds to a 14% share of sales. Investors preferred equity products as an asset class (72%), preferred currency was USD (59%), 58% were listed and 80% were traded on the secondary market.
- Equity products posted sales of CHF 35 billion in the first quarter of 2022, followed by Fixed Income (CHF 10 billion), Foreign Exchange (CHF 7 billion) and Commodity (CHF 3 billion). Equity products accounted for 60% of sales, with fixed income, foreign exchange and commodity products accounting for 18%, 11% and 4%, respectively.
- Non-listed products generated sales of CHF 34 billion in the first quarter of 2022, representing 59% of total sales. Listed products accounted for 41% of sales, with total sales reaching 24 billion Swiss francs.
- The turnover of the primary and secondary market was evenly distributed (50% and 50%) and reached 29 billion Swiss francs each.
- Sales of USD-denominated products reached CHF 23 billion in the first quarter of 2022, representing a 40% share of sales. The EUR share of sales was 32%, corresponding to total sales of CHF 19 billion. With total sales of CHF 8 billion, CHF achieved a sales share of 14% in the first quarter of 2022.
Markus Pfister, SSPA President, comments: “We are pleased to launch the new Swiss Structured Product Industry Report with additional details on the Swiss market for structured products. The additional analyzes give an even more detailed picture of the development of the national market. The analyzes show that in the turbulent markets of the first quarter, in addition to performance optimization products, leverage products in particular are in demand. This allows investors to take advantage of investment opportunities even when there is volatility.”
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