Reference
Clear definitions of the financial terms we use — without jargon, with context.
Auto-callable structured product. If the underlying (stock, index, basket) is above a threshold at an observation date, the product is automatically redeemed with a predefined coupon. Otherwise, it continues to maturity. Attractive yield/protection profile in stable or moderately bullish markets.
Related — Structured products · Protection barrier
Predefined level (e.g. -40% of the underlying) below which capital protection at maturity is no longer guaranteed. A deeper barrier (50%, 60%) offers more robust protection but a lower coupon.
Related — Autocall · Capital-protected product
Financial instruments combining a bond component and a derivative component to offer a custom risk/return profile: conditional coupons, partial protection, exposure to a specific underlying. Structured on-demand by investment banks.
Related — Autocall · Reverse convertible · EMTN
Derivative that insures against an issuer default. The CDS spread (in basis points) reflects market perception of credit risk: the wider the spread, the higher the anticipated default risk. Key indicator for monitoring the solvency of structured-product issuing banks.
Related — ITRAXX · Credit spread
Family of European CDS indices. ITRAXX Main (125 investment-grade issuers), ITRAXX Crossover (75 high-yield issuers). A new series is issued every 6 months (March, September). Benchmark for European credit risk and for building credit-linked structured products.
Related — CDS · Credit spread · Series
Independent wealth advisory firm serving multiple affluent families. Unlike a private bank, an MFO has no products to distribute and acts exclusively in its clients' interests, with transparent fees. Shared access to top-tier expertise (tax, legal, financial).
Related — Family Office · Private bank
Dedicated structure serving one family. Full control and maximum customisation, but requires substantial wealth (typically €100M+) to be economically viable. More accessible alternative: the Multi Family Office.
Related — Multi Family Office
UCITS invested in short-term money market instruments (negotiable debt securities, interbank term deposits) with a stable NAV. Daily liquidity, yield close to the ECB short-term rate. Often preferred to term deposits for tax efficiency (flat 30% French PFU via securities account) and liquidity.
Related — Term deposit · €STR
Bank deposit at a guaranteed rate for a fixed duration. Capital locked, penalties for early withdrawal. Often less attractive than a treasury fund at comparable yield, with different tax treatment. Simple but often sub-optimal.
Related — Treasury fund
Simulation of extreme market scenarios (2008 crisis, Covid-19, rate shock, sector sell-off) on a portfolio to assess resilience. Central tool of institutional risk management.
Related — Sensitivity · VaR
Distribution of wealth across asset classes (equities, bonds, real estate, private equity, cash) based on risk profile, objectives, and investment horizon. Primary driver of long-term performance (Brinson study: 90% of variance).
Related — Diversification · Risk profile
Investment in unlisted companies, typically via specialised funds (LBO, Venture Capital, Growth). 7-10 year horizon, illiquid, but historically superior returns vs listed markets. Accessible to sophisticated investors from €100K-€1M tickets depending on funds.
Related — Private debt · Venture Capital
Market's anticipation of future asset movements, extracted from option prices. A spike in implied volatility enriches the price of options sold in a structured product → allows calibrating more attractive coupons or deeper barriers. Frequent opportunity during geopolitical stress.
Related — Autocall · VIX
Proprietary technology platform of G.A.B. Wealth Management. Integrates quantitative tools and Artificial Intelligence to analyse thousands of investment combinations, prioritise the most robust structures, and provide real-time portfolio monitoring.
Related — Multi Family Office · AI & management