Counterparty risk is generally considered to be the most fundamental risk of a structured product for investors to consider.
Both the potential returns of a structured product and the repayment of capital invested usually depend upon the financial stability of the counterparty bank throughout the investment term.
Professional advisers and investors should seek to identify structured products which are backed by strong issuers / counterparties - not least as this is a regulatory requirement / expectation for professional advisers when providing advice about structured products
The Tempo Issuer and Counterparty Scorecards (‘TICS’) have been designed by Tempo to support professional advisers who need to understand more about the financial strength of the counterparty banks behind structured products
Tempo produce 9 research inputs for professional advisers each month, covering 40 financial institutions / banking groups, including all 30 ‘G-SIBs’ (global systemically important banks).
TICS provides professional advisers with access to multiple, widely recognised indicators of financial strength, pertinent to analysing, considering and understanding counterparty financial strength / credit risk, using a robust methodology, including a scoring system, supporting professional adviser research and due diligence.
We are delighted that Tempo has agreed to offer access to part of TICS for investors through Best Price.
Investors can access the 'TICS: Side-by-Side View' and a selection of 'TICS: Reports', which together offer a level of information that is not readily or easily accessible by investors anywhere else.
The TICS: Side-by-Side View provides metrics which are widely considered relevant in identifying and assessing the financial strength of counterparty banks, allowing these metrics to be compared ‘side-by-side’ for about 15 banks, in alphabetical order from BNP to UBS
Barclays is a leading UK bank. It operates across four core business areas: personal, business, corporate and investment banking.
BNP Paribas is a leading French bank. It operates across three core business areas: retail banking, corporate and and institutional banking, and investment solutions.
Bank of America is a leading American bank. It operates across three core business areas: retail and investment banking, asset management and wealth management.
Citi is a leading American bank. Its core business activities are: safeguarding assets, lending money, making payments and accessing the capital markets on behalf of clients.
Credit Agricole is a leading French bank. Its core business activities are: community banking, asset management, capital markets, corporate banking, structured finance and bank insurance.
Goldman Sachs is a leading American bank. It operates across three core business areas: investment banking, securities and investment management.
HSBC is a leading UK bank. It operates across four core business areas: retail banking and wealth management, commercial banking, global banking and markets, and global private banking.
Investec is a leading South African bank. It operates across three core business areas: corporate and institutional nanking, private banking, wealth, investment and asset management.
JP Morgan is a leading American bank. It operates across four business areas: retail, private, commercial and investment banking, including treasury, securities and asset management services.
Morgan Stanley is a leading American bank. It operates across three core business areas: institutional securities, wealth management and investment management.
Click here to access TICS Report: Morgan Stanley International PLC
Morgan Stanley is a leading American bank. It operates across three core business areas: institutional securities, wealth management and investment management.
Natixis is the corporate, investment, insurance and financial services arm of Groupe BPCE, a leading French bank, incorporating two retail banking networks: Banque Populaire and Caisse d’Epargne.
Royal Bank of Canada is a leading Canadian bank. It operates across six core business areas: personal and commercial banking, corporate and investment banking, wealth management and insurance.
Santander is a leading Spanish bank. It operates across four core business areas: individual customers, private banking and corporate and institutional banking and services.
Societe Generale is a leading French bank. It operates across three core business areas: retail banking, international retail banking and corporate and investment banking.
UBS is a leading Swiss bank. It operates across three core business areas: private banking, investment banking and asset management.
We are also delighted to be able to introduce a new client newsletter, the Best Price FS Structured Products Investor, with the support of Tempo.
Contributing journalists will include the highly respected Financial Times ‘adventurous investor’ columnist, David Stevenson.
The first publication also features an article written by the global head of Tempo, Chris Taylor.
