December 23, 2020
of Lars Brandau, managing director of the DDV
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“Everything is possible on the stock exchange, even the opposite”. And because that is the case, many market participants are increasingly looking for calculable products. Sustainability aspects play a major role here. The certificates are no exception.
Get out of the niche of special interest and into the middle of the full shelves. The topic of sustainability has long been indispensable; that’s good and right. The issuers of structured securities are positioned accordingly.
Investors will be able to choose from a growing range of sustainable structured securities. Around two thirds of the banks plan to increasingly launch sustainable products in 2021.
This is shown by the industry survey conducted by the German Derivatives Association among 19 institutes, which account for more than 95 percent of the overall market. However, just under 58 percent of issuers fear that the sustainability agenda in politics will entail regulatory interventions in existing systems. This in turn could lead to implementation costs for the financial sector. According to the DDV survey, issuers continue to expect rising costs due to new or changed financial market regulations.
Thinking about tomorrow today, actively and responsibly shaping the future – private investors can also pursue this goal. There is no contradiction in using the opportunities on the capital markets and at the same time investing in companies that treat people, the environment and, therefore, our future in a more respectful and appreciative manner. Studies have even shown that a sustainable corporate policy can promise investors better returns in the long term. Because sustainably oriented companies should be able to increase the company value more strongly in the long term through their corporate policy, management processes, production processes and products than companies that neglect these aspects.
The issuers of structured securities are increasingly aligning their offerings to the needs of customers who want to combine private asset accumulation with responsibility for a more sustainable economy. With this orientation, the industry is positioning itself well for the coming years. It promotes ecological transformation and at the same time increases its resilience to sustainability risks.
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