Structured Products
Scotia Capital offers a full range of derivatives, structured credit and leveraged financing in the hedge fund and fund-of-funds arena. With an extensive global presence in Toronto, New York, London and Singapore, we offer structured products that may be customized to suit any unique requirements:
Leverage |
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Leverage can provide potential benefits to diversified, low volatility portfolios by enhancing returns to investors. Leverage may be achieved using a variety of structures, including total return swaps and barrier call options. |
Balance Sheet |
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Synthetic financing via a total return swap or a barrier call option. Transactions can be structured both on a recourse or non-recourse basis. |
Structured Credit |
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Managed CDOs |
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Leverage Facilities on credit assets |
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Loan/CDS trading |
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Correlation Trading |
Alpha Overlay |
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Alpha strategies can be implemented through the use of hedge funds and index products. Scotia Capital can assist in properly structuring an alpha transaction and selecting the appropriate sources of alpha. |
Equity or Credit Linked Notes |
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Structured notes can be customized and linked to the return of a variety of reference assets |
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Note features may be customized depending on requirements of the investor(s): optional coupon payments, full or partial principal protection and leverage.
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Structured Credit
Scotia Capital is a specialist provider of structured credit products and services with a focus on the following specific areas:
- Custom structured credit solutions
- Leverage facilities on credit assets (e.g. leveraged loans, ABS)
- Distribution
We distribute these investments globally and actively invest in some of the transactions we create.
Scotia Capital is an active participant in CDOs and structured credit. We have completed transactions to suit the specific requirements of clients in North America, Europe, Asia, Australia and New Zealand
The Scotia Capital Edge is that we look to use our balance sheet and structuring expertise as principal investor or lender to facilitate business with our clients.
Structured Credit Products & Services
Scotia’s structured credit platform leverages on a unique combination of:
- A fully-integrated platform covering trading, structuring and distribution across North America, Europe, the Middle East and Asia.
- Innovative and diversified product offerings
- Ability to combine the strength of its balance sheet structuring expertise and of its distribution
Integrated Business Construct
- All execution functions housed under same global umbrella – origination, structuring, syndicate/marketing and risk management/correlation trading
Innovative Risk Transfer, Repackaging and Financing Techniques
- Both syndicated and bespoke products designed to meet customer-specific needs and constraints
Global Origination and Distribution Platform
- Leverage relationships with premier managers to execute repeat transactions.
- Utilise institutional, middle market and retail distribution channels
Structured Credit Trading
Trading
- Credit Default Swaps
- Scotia Capital makes markets in a variety of investment grade credit default swaps with a particular strength in Canadian names
- Daily offerings of Asset Swap transactions are available
- Continuous updated listing of negative basis trades, many of which are unique to Canadian bonds of U.S. issuers
- Loan Trading
- Focus list of names and industries
- Par trading to support our primary lead arranged issuance
- Active proprietary distressed loan book
- Correlation Book Trading
- Active trading, risk management of synthetic CDO and First to Default products
- Make markets on bespoke client solutions
- Total Return Swaps/Financing Trades
- Utilize balance sheet in a variety of customized structures financing loan and bond trades
- Dedicated operations team focused on the administration of each transaction including asset settlement, interest collection, swap payments, reporting and tracking.
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