DBS structured products aim to get around uncertainty

A SERIES of structured products by DBS Bank has enabled investors to profit from themes such as consumption and ESG (environment, social, governance), despite the uncertainties in market direction that have prevailed over the past couple of years.

Since the launch of the products in 2018 - comprising notes and/or warrants - DBS has attracted around US$1.4 billion from the private bank and Treasures Private Client segments, many of whom have since exited the products at a profit. The products were designed with a tenor of two to three years.

However, the team behind the structured products, led by Rohit Jaisingh, DBS Private Bank head of capital markets products, has pressed the pause button for now. This is because the products relied on the purchase of call options or warrants. Option premiums have risen in recent weeks as market volatility is elevated. "Market conditions now are not the best for these trades... We have to wait for volatility to normalise and the option price to fall,'' he said.