Structured notes

Offering scope to diversify counterparty risk

As a professional investor, you may be looking to raise deposits for other banks. We originate and structure fixed income, credit and currency solutions.

Enhance your yield

In the current low-yield environment, we can help if you're looking to improve the return on your funds held on deposit, without having to take any risk on the principal.

Bespoke solutions

Find the structured note that's right for you. Generate an enhanced yield from changes in a variety of underlying markets, such as foreign exchange, interest rates, credit and commodities.

Diversify the risk

The structured note enables you to diversify your counterparty risk while maintaining your relationship with us, by taking credit risk on other banking institutions.

It all starts with a conversation

It all starts with a conversation

London and the South East
Midlands
South-west England
North-west England
Scotland

London and the South East

William Poole

Give us a call and speak to our dealing team today.

Midlands

Charlotte Begley

Give us a call and speak to our dealing team today.

South-west England

Ria Selvaratnam

Give us a call and speak to our dealing team today.

North-west England

Daniel Crossland

Give us a call and speak to our dealing team today.

Scotland

Jessica Marr

Give us a call and speak to our dealing team today.

Frequently asked questions

  • What do we mean by secured?

    Investors have no credit exposure to Investec Bank plc.

  • How is this achieved?

    When investors purchase the Structured Note the cash proceeds are used to buy securities which are placed in the security pool. The security pool is a discrete, secured, ring-fenced account with bank or financial institutions who act as independent custodian.

  • How is the ring-fenced account enforced?

    A fixed charge over the security pool is registered at Companies House in favour of the Independent Trustee who acts on behalf of the Structured Note holders in the event of an Investec default.

  • Is there daily margining?

    Yes. If the value of the security pool falls below the value of the Structured Note plus the Independent Amount (see definition below), Investec will be required to post additional security in minimum increments of £10,000 or equivalent. This is checked on a daily basis.

  • What happens if the custodian defaults?

    The counterparty bank or financial institution act as our independent custodian. Should they default, Investec will appoint a new custodian to hold the security. The security can only include the fixed-rate bond plus cash and gilts.

  • What is the credit Reference Entity?

    This is the credit exposure that investors chose to take (i.e. the fixed coupon bond issued by the underlying corporate). The fixed income from the credit Reference Entity bond is converted by Investec into the desired payoff profile (floating/inflation-linked). The credits available include Financials, Supranationals, Sovereigns and Non-Financials/Corporates. This range of credits gives investors the flexibility to match their risk appetite with their desired payoff profile.

  • What if the Reference Entity defaults?

    The structured note ceases to pay any further coupons and investors will receive the recovery rate of the Reference Entity, less any costs of unwinding hedges put in place by Investec to provide the payoff profile of the structured note. The recovery amount may therefore be more or less than the underlying Reference Entity recovery amount.

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