Unexpectedly robust demand for bank shares
As a result, institutional investors are primarily looking for investment possibilities for themselves or their clients to capitalise on the ostensibly expected upswing. “Appropriate investment possibilities can be generated relatively quickly by launching index-linked funds”, says Knoblach. “This demonstrates the robustness of our white label funds, which we are able to bring to market swiftly and affordably due to our structures and thanks to clear regulation.”
Institutional investors continue to anticipate a period of significant volatility in financial markets. “The all-clear has not yet been given”, Knoblach points out. Nonetheless, the US Federal Reserve’s explicit backing for US banks, as well as the Swiss Federal Reserve’s support in line with the Swiss government at Credit Suisse, give hope that there will not be a domino effect in the financial sector. In addition, market participants clearly differentiate between markets and institutions. “Even banks that had no problems were penalised”, Knoblach argues. “Investors are now paying close attention to who owns which bonds and how much liquidity they have.” SVB, for example, underwent a rigorous maturity transformation that, from a regulatory standpoint, would not have been permitted in this country. With an overall P/E ratio of only 6, there are undoubtedly entry prices available for selected stocks.
“For longer-term investors, central bank backing means that share prices can rebound and banks are able to get back on track”, Knoblach says. “Investors will then determine the precise characteristics of a product that will generate a profit.” This allows for the creation and testing of an index tailored to individual needs, which can then be implemented in a fund or certificate after approval by the supervisory authority. This solution also enables unregulated firms and family offices to provide their clients and investors with regulated and custodial securities.