Welcome to the first in a new blog series, Landytech Insights Exchange, in which we’ll be exploring a broad range of market perspectives from experts across our network. Each post is designed to share specialist insight and educational observations from those shaping today’s investment landscape.
In this first edition, we hear from structured product specialists AYDO, who explore how these instruments may be used to help investors navigate uncertain markets, from global defence shifts to credit volatility, through defined outcomes and tailored exposure.
In today’s markets, finding a balance between opportunity and protection can be difficult. Traditional investments - like buying stocks, holding bonds, or investing in funds - may feel too exposed, too uncertain, or too slow to respond to rapidly changing conditions.
That’s where structured products come in.
These are investment tools that sit somewhere between fixed income and equity-style returns. Unlike traditional shares or bonds, they can be custom-built to deliver defined outcomes based on specific market scenarios. In exchange for that precision, investors may give up some flexibility or upside.
This blog explores two real-world situations where structured products could be considered as part of a broader investment strategy, offering conceptual examples of how they may compare with traditional assets in terms of return potential and clarity of outcomes.
Example 1 – Investing Around the Global Military Build-UpWhat’s happening? Governments across the world, including the U.S., Europe, and Asia, are ramping up defence budgets. In the U.S., one of the largest defence budgets in decades has been proposed, while tensions over trade and tariffs (like Trump’s “Big Beautiful Tariffs”) are pushing countries to become more self-reliant. Traditional option: Buying defence sector stocks directly can offer strong potential returns - but they’re volatile, politically sensitive, and often concentrated in a few names. How a structured product compares: Imagine a product that has the potential to:
Compared to direct equity holdings, this structure aims to reduce volatility and provide predictable income, making it easier to stay invested in a long-term theme without being at the mercy of daily market swings. Risks to consider:
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Example 2 – Earning Income in a Market Hit by Political ShocksWhat’s happening? In April 2025, political unrest in parts of Europe, called “Liberation Day” by the media, caused major market disruption. Even strong, investment-grade companies saw their borrowing costs rise suddenly as investors reacted emotionally. Traditional option: Investing in corporate bonds during this time might offer high yields, but also comes with interest rate sensitivity, default risk, and limited control over income timing. How a structured product compares: A tailored product might:
This kind of structure may help investors access income during periods of stress - similar to bonds, but with defined conditions and potentially less mark-to-market volatility. Risks to consider:
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For many investors, the question isn’t “where do I invest?”, it’s “how can I invest with more clarity?”
Structured products give you the ability to:
They’re not guaranteed. They don’t remove risk. But they give you the option to invest in a way that’s calibrated to your needs - not just market cycles.
In an environment like 2025, where inflation is sticky, geopolitics are tense, and markets react quickly to headlines, this kind of clarity is valuable.
About AYDO
AYDO is a financial technology company whose mission is to unleash the potential of structured products portfolios through expertise, education and the power of data.
Learn more about AYDO.
Disclaimer
This article is for educational purposes only. It does not constitute investment advice or a financial promotion. Any examples shown are for illustration and do not describe actual investment products. Structured products involve risk, including the potential loss of capital and income. Investors should understand the terms and the creditworthiness of the issuer before considering such solutions.