Introducing StructuredEdge.com

Structured Edge is a new web delivered independent research and analytics service for RIAs, broker-dealers, issuers and other professionals active in the US structured product market. Powered by Future Value Consultants and Numerix, Structured Edge is dedicated to providing up-to-date authoritative and complete analysis covering virtually the entire US structured products retail market across all product types and issuers. Finding, researching and selecting structured products has never been easier and this tool is invaluable to anyone trying to follow this important and growing market.

FVC developed the world’s first objective, independent quantitative structured product analysis service which has been in operation in the UK since 1999. In the UK FVC’s methods and techniques are used extensively by thousands of financial professionals and have been established as the standard for independent structured products analysis. Numerix is the derivatives’ market premier analytics provider and has a wealth of resources and experience which it brings to the Structured Edge offering.

Structured Edge features and benefits:


Structured Edge features and benefits

The Report:


Sample report (Report 14195: LEV RET issued by BARCLAYS)

Product breakdown:

The first part of a Structured Edge report consists of clear product details and classifications which highlight all the key features and properties of the product taken from filing documents, prospectus or term-sheet. This includes information such as the issuer, underlying asset, key dates and product terms displayed in a simple table. It also contains links to the product prospectuses. The Executive summary and Points for and against sections helps the user to understand the product’s structure in more detail.

The Key Product Characteristics graphic shows four key statistics: the product’s maturity, issuer credit number, and product score and riskmap.

The report then moves on to the Product Description which provides a more comprehensive analysis of the product. This written report is broken down into four sections: Potential returns, Principal repayment, Investor profile and Credit risk. The report includes worked examples to illustrate the product’s pay-off profile.

Scores and analysis

This section is the core of the report and has been specifically designed to help the user analyse and compare structured products.

This section shows our key scores: value score, return score and riskmap. Alongside the scores are charts which enable the user to compare the product to the rest of the market.

The scores for each product are calculated using the sophisticated models and techniques that have been developed and applied by FVC for over a decade drawing on the company’s experience and expertise in business research and quantitative methods. Each Structured Edge report is analyzed using current implied market data and re-scored weekly to enable advisors to compare products and therefore assist in their product selection process.

For a detailed explanation of the scoring methodology please click here.

Payoff chart and scenarios table

The pay-off chart and scenarios table illustrates the returns a product delivers plotted against values for the underlying asset. The pay-off chart shows a simple simulation of typical outcomes for the structured product plotted against values of the underlying asset. The chart gives an indication of the likely range of returns which makes it easier for the user to indentify payoff given the performance of the underlying.

Probabilities of product return outcomes

The probability of returns tool enables the user to investigate the likely returns of a product under each of the five different assumption sets. The detailed probability breakdowns mean that advisors can get a better understanding of how a product may perform under the five different growth scenarios. The charts allow the user to view the probabilities of returns with and without credit risk taken into account.

Summary of main sections on StructuredEdge.com

New deal list

This section displays the latest products that have been analyzed on Structured Edge. Products can be sorted by product type, underlying, issuer, overall score and risk. The page provides a snap shot of the most recent deals that have been published in the last seven days and offers a quick and way to find and view reports on new products.

Deal search

The Deal Search page is the full database of reports analyzed on StructuredEdge.com, and is updated on a daily basis. It allows the user to search by product type, underlying, pricing date range, maturity, issuer and status. The status of each product at any given time is given as current or non-current. Current products are those that have not yet reached their respective pricing dates, or one whose pricing date was in the second half of the preceding month during the first 15 days of the following month. Reports can be sorted by any of the field columns shown.

Virtual advisor

This Virtual Advisor is an innovative tool within Structured Edge. It complements the conventional search facility by providing rankings of products within a filtered universe chosen by the user and according to various desired product characteristics. The user can define the shortlist of products by the criteria including underlying asset, issuing institution, product length, protection levels, income, credit risk, and scores.

Maturities

The maturities section of the site includes analysis on recently matured products as well as a list of upcoming product maturities or potential maturities. Statistics for products maturing in the last three and twelve months are shown. These tables display the average and median returns of the products and compares the structured product market returns to three other investment measures.

News and market commentary

Structured Edge includes a news section which publishes items of interest to its subscribers. This section includes up to market commentary and statistics to keep the user abreast of what is happening in the structured product market. The most recent headlines are shown on the homepage of Structured Edge. Regular categories of news articles include market trends and analysis, a detailed analysis of a selection of interesting new products and structures, a weekly summary of the structured product market and reaction to recent market events and regulatory developments.

Rankings and statistics

The rankings page provides statistics of all products analyzed on Structured Edge. It offers the user a useful snapshot of the market over different periods and is a way of indentifying trends and patterns in the market.

The issuers, underlyings and product type pages offer the user a comprehensive review of how products have been distributed in the last completed month. The statistics are displayed by the amount of products issued and by notional amount.

Education

The Education page consists of expertly written articles aimed to educate the user on the key generic aspects of structured products such as product types and characteristics, tax wrappers and regulation, pricing, credit quality and underlying assets. The detailed articles offer the user the opportunity to build on their knowledge of the industry as well as the technical aspects of structured products.

Reports featured on this website www.structurededge.com are written by Future Value Consultants (FVC), UK based structured products specialists. The analysis presented here is based on the prospectus, brochure or other literature made available to FVC. This research is aimed at financial professionals only as part of their product evaluation process. This research is not intended for investors in any jurisdiction nor is it a recommendation to buy or sell securities.

The scores and assessments made are based on an objective, consistent, standardised methodology developed by FVC using its own pricing models and methods and independently sourced data. The factual information is prepared in good faith by FVC. However no recommendation of any investment is made or implied and the user should draw their own conclusions and take account of the needs of any individual investor.

This service aims to provide indicative information about investments or equity markets, but market conditions may have changed since any report was written or analysis undertaken. We reserve the right to alter or terminate this service at any time.

No liability whatsoever is accepted for any loss or expense incurred from using any part of this service. We accept absolutely no responsibility for the use of this service by any user who retains all responsibility for the use, interpretation or assumptions about any material contained in this service. This research service is intended as general information only and does not constitute advice, recommendations or any investment contract with any user.

FVC is a limited company specializing in structured products based in the United Kingdom and regulated by the UK Financial Services Authority. It is also a US registered RIA for the purposes of providing investment valuations only. FVC does not carry out any banking or investment business in the United States and is not a registered broker or dealer and does not seek to solicit any such business or obtain registration.

The use of these reports is governed by the terms and conditions in the subscription agreement.

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