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Glossary

Issuer

Issuer is the financial institution that issues a structured product and is liable to the holders as debtor. Structured products are legally debt obligations of the issuer. In the event of the issuer's insolvency, a total loss may result, regardless of how the underlying asset has performed.

At a glance

  • Structured products are not deposit-protected; Issuer Risk remains with the holder.
  • The issuer's creditworthiness influences the value of the product during its term.
  • COSI (Collateral Secured Instrument) products reduce Issuer Risk through collateralisation.

Frequently asked questions

In the event of the issuer's insolvency, holders of structured products rank as unsecured creditors. The invested capital may be lost in full or in part, regardless of how the underlying asset has performed. Collateralised products (COSI) offer a degree of protection in this scenario, but not complete protection.

Part of the topic

AMC & Structuring

Sources: Swiss Structured Products Association (SSPA)