The financial crisis has prompted many buyers of structured products to reduce their counterparty risks. Not all investment banks, however, were affected equally by the crisis: while a few no longer even act as issuers, others still continue to represent a responsible counterparty risk.
As a broker, it is our task to be able to offer our clients a wide range of counterparties and find the optimal issuer through competitive bidding. In doing so, we assume a major role in the value chain: from the concept, through scenario analysis up through the term sheet, we offer the buyer structured products from one source.
Especially in this current environment of low interest rates, deepened concerns about the economy and at times serious issues with creditworthiness, providing advice to clients must become the focus of value creation. As an independent broker we are in a position to put the interests of our buyers ahead of everything else. Instead of giving priority to products from any given issuer, we can orient our services totally to giving the buyer the best advice.
Through our role as a central counterparty, we offer the buyer a single gateway through which he can reach many different issuers, and thus we serve as a single contact for all his issues and concerns. Because we are a counterparty for both the issuer as well as the buyer, our clients gain even an additional advantage in that they can remain anonymous to the issuers.