Basket performance is multiplied by 2.5 and returns are uncapped
US investors can choose from protected or leveraged versions
Quarterly coupon gives 10% annual return in the absence of kickout
More Barrier options articles
Societe Generale sets barrier at 60% in income product for UK retail
Index-based product structured to limit upside and protect downside
Up three times
Capital-at-risk products with a 60% barrier have crept into the retail market and are becoming increasingly ubiquitous. But is the extra risk they pose appropriate for retail investors?
Coupons and capital risk
Fixed coupon for the cautious
Taking a bite of sour Apple
Long-haul leveraged return
In response to industry fears of a collateral crunch, regulators have revised the proposed rules on margining for uncleared over-the-counter (OTC) derivatives.You can find out more by downloading this white paper here.