Demand for structured products has remained strong in recent years. Investments exceeded €70 billion in 2025, according to data provider SRP, and collections in the first quarter of 2026 were up 35% year over year.
These products are designed to run for a set period and offer returns linked to an underlying asset, such as a stock, an index or an interest rate. Depending on the structure, they may also provide partial or full capital protection at maturity. Average returns on products that matured have ranged from 4.9% in 2020 to 8.5% in 2025, while only a very small number have resulted in losses for investors.
Interest in the products has been supported by the return of structures guaranteeing capital at maturity. Around one-third of products issued over the past two years included such a guarantee and offered an annual coupon conditional on interest rates staying low or falling. The structure appealed in particular to life insurance policyholders seeking diversification while limiting risk.
However, interest rates did not follow the expected path of steady declines. As a result, some of these products have temporarily stopped paying coupons, and their market values have fallen by around 15% to 20%.
That decline does not necessarily mean investors will incur a loss. For products with capital protection at maturity, selling at a discount on the secondary market would turn the fall in value into a realized loss; holding the product means the reduction may remain only on paper. Missed coupons, however, represent income that investors have not received.
Olivier Malteste, Yomoni’s investment director, said some products betting on falling rates will miss coupon payments, although they have generally already distributed part of their expected return. He added that it is not certain interest rates will remain structurally high, and said selling a capital-protected product now could mean giving up its guarantee. The decision therefore depends on each investor’s circumstances.
While rising rates have penalized some earlier product generations, they also give providers more scope to design new solutions with potentially higher returns.
Sources: Le Monde Économie.