A combination of two or more financial instruments, this category consists of a single structure. It is a single and indivisible package consisting in the combination of an interest rate-linked product plus one or more financial derivatives. The financial derivative is referenced to one or more assets, the so-called underlying asset/s, with a preset maturity term. There are many underlying assets: Stock indexes, shares, exchange rates, interest rates – the trend of the underlying asset will determine the profitability of the structured product, together with the return of the principal invested at maturity. This integration allows investors to gain benefit from a fixed or variable profitability.
Based on the level of risk at maturity, these are the structures:
Structured capital-guaranteed products: Guarantees return of the original amount invested at maturity.
Structured capital-at-risk products: No guarantee of capital repayment at maturity and whose return will depend on the trend of the underlying asset(s).