Structured Investment Products
As our clients will have seen recently, we have been very busy preparing detailed communication in relation to a number of quality Structured Investment Products that have or are about to be issued.
We know that we provide our clients and consumers with a vast amount of reading, so we try our best to filter the ‘nice to know’ from the ‘need to know’ communication. This communication (for Structured Product Investors) is ‘need to know’ information.
Meteor produces a league table which investors and advisers alike consider in relation to assessing the relative strength of a range of Global Investment Banks.
We append the article and table below for September 2020: –
Counterparty League Tables: September 2020
Meteor have created the league tables to help inform the investment selection process and with the assessment of the respective strength of a range of global investment banks.
- Credit ratings represent an assessment of the creditworthiness of an institution. Moody’s, Fitch and Standard & Poor’s make up the majority share of the credit rating industry and their ratings are watched especially closely when it comes to banks. Averages have been taken of the long-term issuer credit ratings of the aforementioned entities in the table above and ranked them in order of perceived strength.
- Credit default swap (CDS) rates allow investors to gauge how risky an entity’s debt is perceived to be relative to other entities based on market supply and demand. Higher CDS rates are considered riskier because higher premiums are paid to “insure” against the higher risk of credit event. The banks in the above table have been ranked based on their latest 5-year CDS rates with lower rates being more highly rated. Banks marked in green indicate a fall in the observed CDS month to month. Banks marked in red indicate a rise in the observed CDS month to month.
- Depending on the level of influence that a financial institution has on global financial markets, they may be considered a “systemically important bank”. Since 2011, the Financial Stability Board has published a list of banks categorised as such and ranks them in buckets corresponding to their required level of additional capital buffer. The higher the requirement, the greater their perceived importance.
This information has been prepared solely for information purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any investment offered by Meteor Asset Management. The information is based on or derived from information generally available to the public from sources believed to be reliable. No representation or warranty can be given with respect to the accuracy or completeness of the information. We do not undertake to update this information. Meteor Asset Management Limited and its affiliates disclaim any and all liability relating to this information, including without limitation any express or implied representations or warranties for statements contained in, and omissions from, this information. Additional information is available on request. Meteor Asset Management Limited does not give investment, tax, accounting and legal or regulatory advice and investors should consult with their professional advisors.
Data used for rankings sourced from Bloomberg, 29 September 2020
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Please pay attention to the Important Information.
The article is not recommending investment into any Counterparty, nor are we as a regulated business providing advice based upon the article. The article is for information purposes.
Regulated Independent Advice is provided only where the ‘know your customer’ circumstances is gathered, enabling an investment recommendation to be made in respect of an investment’s ‘suitability’ to meet the needs of the investor.
As always, if you require professional Independent Financial Advice, simply make contact. We will do all we can to assist you, focusing on the best outcome.
We trust the information is of value.
Best Price FS Team