What Happens If the Issuer Fails? Most Products Can’t Answer That
Most structured products leave investors vulnerable to issuer default - a risk that might be far more pressing than assumed. For instance, speculative-grade (i.e., "junk") bonds carry a long-term average default rate around 5 percent, and in stress periods, it can spike to 9 percent.
In Q2 2025, U.S. private credit issuers’ default rate climbed to 5.5 percent, up from 4.5 percent in Q1. That’s not hypothetical, it’s real, recurring risk in today's markets.
Imagine investing in a promising structured product, then the issuer folds, and your capital goes down with them. That’s a blind spot most investors can’t afford.
With iMaps, that scenario gets a hard pass. Here's how:
Every structured product is backed by a Segregated Portfolio - legally ring fenced within our own subsidiary, fully isolated in terms of assets and liabilities.
That Segregated Portfolio is collateralized, held with an independent trustee - exclusively for investors’ benefit.
Even if iMaps ETI AG hits trouble, your investment stays shielded - no cross contamination across portfolios.
Plus, our process is efficient, and cost-effective, with a typical launch timeline of about 30 business days.
Why it’s so important?
When structured-product issuers fail (and hint: they do) investor capital doesn’t vanish quietly. That’s the pain most don’t see coming. With iMaps, your capital doesn’t depend on the survival of the issuer. It depends on a structure built to protect you.
PS: You can use the following links to easily book an e-meeting with us: https://meetings.hubspot.com/jeffrey-alldis (Jeffrey Alldis) or https://meetings.hubspot.com/herbert-hakala (Herbert Hakala)
