Equities

Equity Exotics and Hybrids

The J.P. Morgan Equity Exotics and Hybrids team works on complex equity-linked and hybrid exotic derivatives.

  • A “risk-controlled” way to invest in risky assets
    Equities can have high returns but are risky and investors may lose capital in a direct investment. Capital protected structures enable investors to take get exposure while ensuring they will recover at least 100% of their principal at maturity.  Alternatively investors may wish to increase their risk to get the potential for high returns. Exotic and Hybrids is expert in developing, pricing and trading these and much more complex payouts, all geared towards giving investors control over the risk in their portfolio.
  • Access to non-traditional asset classes
    Our products feature many types of assets: single stocks, mutual funds, equity indices, but also assets where access is not straight-forward, such as bond indices, hedge funds, commodities or FX. Hybrids can combine several of these assets in a single structure.
    In addition we are market leaders in creating totally new assets for structured products, such as algorithmic trading strategies developed internally and dynamic strategies driven by external advisers.
  • Take advantage of any market scenario
    With many traditional investments, only a bullish position can be taken (i.e., by buying a stock when thinking its value is going to increase). Structured products enable investors to take any position they want: bullish, bearish or flat. Moreover, investors do not have to limit their view on the performance of an asset. They can also express views on its volatility or on its correlation with other assets.

    The “exotic” element can derive from an unusual payout or new underlying asset, or a combination of both. The team innovates in creating new products to meet clients’ needs, takes risk in pricing and executing trades, and hedges and manages the resulting risk positions until maturity. 

    J.P. Morgan can deliver exotic products as OTC derivatives, as securities or via structured funds. These products are developed for JPMorgan’s clients globally including financial institutions, corporates, high-net worth and retail individuals.

Contact the Equity Derivatives Group 
For additional information, please 
email us or call the following numbers:

  • London EDG Desk: +44.207.779.2446
  • New York EDG Desk: +1.212.622.6500
  • Asia ex-Japan EDG Desk: +852.2800.8857
  • Japan EDG Desk: +813.673.68722

 
 

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