TESTIMONIAL - CAT Financial Products

Testimonial - 18.09.2018 - 3 min read time

«We recommend GENTWO to all our clients», Giuliano Glocker, CAT Financial Products


CAT Financial Products AG (CATFP) is one of the leading Swiss providers of investment solutions in the market for structured products. Since 2008 the company has offered its services to professional asset managers, banks and institutional investors via one of the most innovative technologies. Here the focus is on three main areas: 1. Best execution (multi-issuing house platform, certificates (MIFID II)), 2. Reporting and lifecycle management (fully automatic lifecycle management, alert system, web portal, white labelling) and 3. Investment solutions (financial engineering, product and portfolio analysis, back-testing and stress tests). Now the logical next step is the issue of its own structured products too.


Why have you chosen a partnership with GENTWO?
In recent years we have issued some non-standard products. Where banks could or would not help, we had to build our own solutions and then we soon turned to some issuance vehicle providers in Europe. Unfortunately, this collaboration turned out to be very difficult. Besides excessive costs, lack of know-how and, above all, a setup in Switzerland that had not been thought through were the main problems. So in 2017 we decided to pick up the baton ourselves and we intended to set up our own issue platform via issuance vehicles. When we heard about GENTWO’s plan, we knew straight away: Why do everything ourselves? We did not have either the staff capacity or the time for that. Our core area is structuring investment solutions for our institutional clientele. But for some projects we wanted to be able to undertake the structuring ourselves and to be able to offer new services in this area.

Where do you see the crucial difference from existing solutions?
The new investment solutions are highly complementary to the existing business. In recent years we have issued several thousand standardised structured products for our clients. In this context we have in each case sought for our clients the best price in the market through 30 issuing houses and have always given our clients independent advice. This business will be scarcely affected. The idea is to allow new approaches and products and to achieve new flexibility and to do so independently of banks. We can now undertake securitisation for our clients that were previously not possible as such. We now offer the securitisation of investment products of all kinds via several issuance vehicles.

What types of products can you now offer with this?
The most straightforward products are of course tracker certificates, AMCs, credit-linked notes and capital-protected products. This range of standardised products is constantly being expanded. Here it is all about segregating risks and being able to choose all the parties involved for yourself. So the platform makes a great deal of sense, especially for banks and securities traders.

We have also already looked at or launched projects mainly in the areas of financing of all kinds and loans, with and without collateral, private equity and private debt transactions, securitisation of non-back investments such as art, wine, licences, airplane leasing and crypto certificates. For us, the last item in particular is a completely new service for our clients. And with the first item too, we can score with this new and totally transparent approach.
How will your company change as a result?
Our goal is innovation and constant and permanent improvement in our services. We wanted to be the first independent financial service provider in Switzerland that can offer the issue of its own product. We have now achieved this. With this, as well as with the new services and especially the new classes of investment, we can in particular serve new clients. So with this we are expanding our range of services within our core area, whilst the new products and clients are complementary to the existing business.

What goals will you pursue with GENTWO in the future?
We want to grow and to penetrate additional markets, enter into further cooperation arrangements and offer new services. issuance vehicles are certainly not a new invention. However, the new setup, the scalability and the Swiss Made stamp were decisive for us. But I was persuaded about GENTWO above all for one reason.
"The products offered can change the financial market place!"

It is not just about offering new products that only banks have been able to offer in the past. Banks can also use these products since then they are no longer accumulating the risks on the balance sheet and they can also offer their clients considerably more flexible and less expensive products. That is in fact why it is called Generation Two – the next generation. We are proud to be able to contribute our small part to this positive development. Specifically, we are now moving towards internationalisation. The biggest potential is probably to be found in Asia whilst Europe, the Middle East and South America are extremely interesting markets. Since the GENTWO model can flexibly exchange any party (the custodian bank, the processing and also the jurisdiction of the issuance vehicle), there are practically no limits to the area of their application! We are ready for everything.

For a original copy of this testimonial please write to contact@g2fp.com

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