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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 special purpose vehicle (SPV) 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 SPVs. 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 SPVs.