Marc Premselaar, Senior Managing Director of Capital Markets for CAIS, joined Julie Cooling, Founder and CEO of RIA Channel, at the CAIS Alternative Investment Summit to discuss the growth of the structured products market.
Structured notes are bonds with payouts that can be customized to any index or market security, such as Apple, the S&P 500, or the price of oil. Structured notes are used to enhance yield or to gain efficient access to upside price movements while protecting downside risk. Structured products are now being used as the next leg on the alternative stool. Premselaar states that if advisors aren’t talking to their clients about structured notes, they can be sure that someone else is.
CAIS seeks to help RIAs and independent advisors compete with wirehouses and private banks that have been increasing their use of structured products. Today, 40% of advisors at wirehouses and private banks have used structured notes in client portfolios compared with just 10% to 15% ten years ago. CAIS seeks to level this playing field by offering an open architecture platform providing advisors access to structured products from 18 issuers. Premselaar predicts that the next step in the growth of the market will be to use structured notes in registered funds and SMAs.
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