Within the global financial sector, various experts work to solidify national markets, grow infrastructure needed to keep up with a burgeoning economy, and strategize to invest funds that secure the retirement funds of millions of individuals. The ingenuity of leaders within various financial markets helps to grow personal wealth for countless individuals, stabilize the economy of entire countries, and create a secure financial plan for the betterment of all parties involved. Thus, exceptionally complicated work created in the financial field yields the power to change the lives of millions of individuals on a personal, local, and country-wide basis. Innovations in public markets set trends, create new opportunities, and develop products that make it easy for individuals to take control of their financial future through active investments.
Thus, the work of financial experts is important, and produces tangible effects that trickle down to the members of a particular population. With continued globalization shaping the manner in which financial business is conducted, many countries are working in tandem to create products that will translate equally throughout various locations, and produce positive results for all parties involved.
While the practice of “investing” dates back to the era of bartering, trading, and the birth of the banking system, recent technological advancements of the Golden Age of Technology have allowed for various new options to arise within the last half century. On a global scale, the opportunity to invest outside one’s immediate geographical sphere has opened new opportunities for investors, and investment bankers, to partake in a myriad of bespoke options that best suit their individual needs.
Though advancements in the financial sector have been countless, the successful implementation of the STRIPS in Europe has been a notable accomplishment , and for the financial professionals responsible for populating the system. STRIPS is an acronym for Separate Trading of Registered Interest and Principal of Securities, a type of investment that allows investors to control various aspects of their investment on a separate basis, including the individual interest, and principal components of eligible investments as independent securities. This includes Treasury notes, bonds, and TIPS. Along with this additional investor control, the STRIPS system also allows investors the peace of mind of knowing exactly how much their investment will pay out, and on what specific day they can expect said payment.
These benefits have made STRIPS incredibly successful since their launch, and have garnered great interest from first-time investors. Simple in their formatting, STRIPS are considered “zero coupon”, as they only provide investors with a single payment at maturity. This simplicity makes them ideal for individual investors who are beginning to delve into the realm of the money markets, and may feel somewhat overwhelmed by the sheer number of options present within the financial sector. Since STRIPS can only be purchased, and held by financial professionals, including government securities brokers and dealers, they can be easily controlled by the professionals with the insight, knowledge, and experience to lead investors into successful investments.
In the United States, STRIPS were introduced in 1961, only to be discontinued in 1974. After a brief hiatus, the system was re-introduced in 1985, when new Treasury securities were initiated for a ten year maturity period. From there, the system saw continued growth within the United States, and several government changes were enacted to broaden the manner in which STRIPS were accepted, utilized, and handled.
In Europe, many countries independently created similar STRIPS systems, backed by their independent Treasury Departments. With the creation of the Euro, and a centralized Euro-based investment system, the constantly changing financial status of the region allowed for the creation, implementation, and successful utilization of FRF STRIPS, EUR STRIPS, and European Government Bonds. Though many financial professionals were involved in the integration of these growing investment options, Clément Perrette has steadfastly implemented the successful utilization of STRIPS throughout Europe over a period of many fruitful years.
At the end of 2009, AFT (Agence France Tresor) introduced new rules for stripping and unstripping trades on fixed-rate OATs in response to market demand. The new rules introduced a new type of bond that makes no distinction between principal and interest: a “fungible zero-coupon bond”.
After stellar developments for more than 20 years from the mid 1990s, notably in France and Italy treasury markets , banks new balance sheet constraints and negative yields have slowed demand for european zero coupons in the last couple of years, but any rates normalization should spur the demand again
With over twenty five years in various leadership positions throughout the financial sector, nowadays Senior Fund Manager and philanthropist Clément Perrette has leveraged his skills to create tangible changes within the sector. Working within the world’s largest, and most respected financial organizations, Perrette has parlayed his expertise to successfully launch various programs throughout Europe, and increase the positive public reputation of various financial institutions.
Attracted by Mathematics and Physics studies since his young age , after his Bachelor Degree Clément Perrette joined preparatory class for high scientific school in Paris, and earned a Civil Engineering degree, specializing in applied Mathematics and Computer Science from Ecole Nationale Supérieure d’Informatique et de Mathématiques Appliquées de Grenoble in 1989. Finally, to conclude his formal post-undergraduate education, Perrette received the Master of Finance degree from the esteemed HEC Paris in 1990.
Entering the workforce post-matriculation, Perrette landed his first position at Société Générale Paris, where he was tasked with setting up the FRF STRIPS trading desk, and spearheaded the implementation, trading, and success of this program. Perrette led the team that ensured successful daily operations, and assisted with the public relations tasks needed to grow the popularity of these newly adapted FRF STRIPS. As a direct result of his professional efforts, Perrette launched the company to become the top three franchise house in France.
Following his initial three year stint, Perrette joined the elite team at Paribas SVT (“Spécialistes en Valeurs du Trésor” in 1995, where he remained until 2000. With the founding of the European Union in 1993, complete with the unified currency of the Euro, various international parties were created to allow for seamless, democratic, and safe investment opportunities between the various countries within the European Union. In turn, this unification brought forth the opportunity for the creation of a Euro-specific STRIPS system. Throughout his appointment at Paribas, Perrette was responsible for launching the EUR STRIPS program, as well as continuing the success of the FRF STRIPS program. His commitment to excellence allowed for the Parisian financial institution to achieve number 1 franchise rankings in clients market shares at the time..
From there, Perrette’s career trajectory saw him at Deutsche Bank Paris, where he worked from June of 2000 to June of 2002. Parlaying his previous experience within the realm of EUR STRIPS, Perrette continued to successfully lead the program at Deutsche Bank, leading the institution to reach the coveted status at the number one customer rated customer franchise. In addition to furthering his experience in the successful growth of STRIPS, this position allowed Perrette to delve into Government Bond trading, in both long-end, and European linkers.
From 2002 to 2013, Perrette engaged in meaningful leadership roles with Barclays Capital London. Initially brought on as the Head of EUR Long End Rates trading, Perrette excelled swiftly, and grew his position to Managing Director and Head of the all EUR Rates trading team . Responsible for setting up desks within this role and improving trading teams market share and profitability , Perrette leveraged over ten years of pertinent experience conducting similar STRIPS launches into a successful launch for Barclays Capital. Through his extensive efforts, Perrette once again raised the ranks of the company, making Barclays Capital the number one franchise house for both STRIPS, EUR Government bonds, and EUR Swaps.
In Perrette’s final career iteration at Barclays London from 2012 to 2013, Perrette garnered the position of Head of the Investment Function, implementing Barclays Plc liquidity Buffer reporting to Barclays Plc CFO.
After multiple decades specializing in the ongoing development of STRIPS, and government bonds, Perrette actively pursued a change in scope, with the intention of garnering a position within asset management industry that would allow him to dedicate additional time to philanthropic endeavors. At RAM Active Investments, Perrette’s current professional home, he remains actively involved as a Senior Portfolio Manager, and Managing Director. Continuously successful within this current role, Perrette works in tandem with the team at RAM to grow the company’s Fixed Income offering.
In addition, Perrette currently devotes extensive efforts toward marine conservation efforts. Perrette’s efforts, along with ocean photographer Philip Hamilton, and a collection of over 50 leading biologists, culminated in the printed tome “Call Of The Blue”, which aims to raise awareness of global oceanic issues through beautiful photography, combined with informational text. In addition to this impressive project, Perrette also worked on the upcoming film “Ocean Souls”, which aims to ultimately end the practice of whale and dolphin poaching, through the dissemination of pertinent information about these ocean giants, creating empathy for the precious animals.
Though Perrette’s extensive career has included various leadership roles, and has culminated in upper management positions, Perrette’s success in the niche realm of launching STRIPS has solidified him as a key player in the development of the entire sector. Through his leadership, European STRIPS have become tangible investment options for countless individuals, and have allowed various financial institutions to successfully provide this fruitful service on behalf of their clients. With an impressive resume that has spanned multiple decades, Perrette undoubtedly shared his wisdom with countless peers, bestowing his wisdom upon future generations of financial professionals, ensuring the continued success of the STRIPS market.
