What is a structured product?
A structured product is a debt security issued by a bank or financial institution, whose repayment and return depend on a formula set in advance and linked to one or more underlyings: an index, shares, interest rates, or a company's credit. The maturity and mechanism are known from the start, but the final result is not.
A structured product usually combines a bond (which carries any capital protection) and derivatives (which create the payoff formula). A few terms to know:
- Underlying: the asset the formula depends on (for example a stock index).
- Coupon: the expected return, often conditional.
- Barrier: a level of the underlying below which capital protection disappears.
- Autocall: a clause that ends the product before maturity if a condition is met.
What is a credit-linked note (CLN) and what are its risks?
A credit-linked note is a debt security whose repayment depends on the financial health of one or more reference companies or states. The investor receives a coupon, often higher than on a standard bond, in exchange for taking on the credit risk of those entities. If one of them defaults (bankruptcy, missed payment), the capital repaid can be sharply reduced.
A CLN actually exposes you to two credit risks at once: that of the reference entities, and that of the note's issuer. A high coupon signals high risk, not a better deal.
What is an actively managed certificate (AMC)?
An actively managed certificate is a security issued by a bank whose value tracks a portfolio actively managed by a manager according to a defined strategy. It gives access to a management strategy in the form of a single security. Legally, the investor holds a claim on the issuer, not the assets in the portfolio.
AMCs are widely used in Switzerland. The Swiss financial market supervisory authority (FINMA) has pointed out that, unlike a fund, an AMC does not offer the same segregation of assets: if the issuer defaults, the investor is one creditor among others. Always check who the issuer is, who the manager is, and how fees are calculated.
What is the issuer risk of a structured product?
It is the risk that the institution that issued the product cannot repay it, for example if it goes bankrupt. Even a product presented as "capital protected" is only protected as far as its issuer is sound. This is why the issuer's credit quality matters as much as the product's formula.
| Risk | What it means |
|---|---|
| Issuer | Default of the issuing bank: possible loss of all or part of the capital |
| Market | Adverse move in the underlying, a barrier breached |
| Credit (CLN) | Default of a reference entity |
| Liquidity | Selling before maturity is difficult or at an unfavourable price |
| Complexity | Formula hard to compare, costs sometimes not very visible |
| Currency | Product denominated in a currency other than yours |
In France, the financial markets authority (AMF) and the prudential supervisor (ACPR) published a study in June 2026 on the distribution, costs and performance of structured products sold to retail investors, and raised their expectations of distributors. It underlines the importance of understanding each product's costs and target market.
Who can invest in structured products, and over what horizon?
Structured products are for investors who understand how they work, accept a risk of capital loss and can hold the product until maturity, often several years. Some products, notably CLNs and AMCs, are restricted to sophisticated or professional investors depending on the rules in the investor's country.
At Groupe OPERA, structured products are designed with international financial partners, who issue or distribute them under their own regulation. They are only considered after a wealth diagnosis and for a limited share of the portfolio.