SG: short durations remain a challenge for structured products in Apac

In an interview with SRP, Jung-Jin Yoon (pictured), head of global markets cross asset sales, Asia Pacific (Apac) at Société Générale, reflects on the structured product market in 2022 and shares his outlook on equity and hybrid asset strategies for the new year.

Jung-Jin Yoon (JJ Yoon) notes that 2022 was an extremely challenging year on equities across all markets, but on the flip side it was also “quite an impressive year” for fixed income in most Apac countries where structured products have typically been used as a means of generating stable income in a very low interest rate environment.

“Today we are finally in a regime where cash yields,” said JJ Yoon. “Hence this has shifted the investment cycle from equities to fixed income driven by capped-floored floaters and fixed rate notes.”

Obviously, according to JJ Yoon, as rates pick up, the sentiment in the equities market has been fragile triggering a return to basics shift.

“There is massively higher demand on principalprotected structures. I don't think there has been any