Duggan offers credit and equity play

Duggan Asset Management, a Dublin-based niche investment firm, has launched a 100% capital protected deposit-based structured product - called the Credit Bond. The product is designed to give investors exposure to the high-yield credit market by investing in the Markit LongX Europe Crossover EUR Isovol Index Excess Return (a long position in credit which is the equivalent of selling protection on the iTraxx Crossover Index). The product also has the potential to benefit from stock market performance as the participation rate at maturity will rise (from a minimum level of 100%) in line with the Dow Jones Eurostoxx 50 Index.

The three-and-a-half year trade will pay back 100% of the capital plus a minimum participation of 100% in the credit index. Also, returns can be boosted by the performance of the DJ Eurostoxx 50 Index, eg. if the index has risen by 60% at maturity, the investor will get 160% but if the equity index falls by 20% they will still get 100% participation in the credit index with 100% capital protection. Returns are in euros and the issuer and guarantor of the bond is Ulster Bank Ireland. The