Sapphire sales show buyers still want guaranteed capital

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Derivatives dealers have been designing increasingly complex equity-linked structures for the European retail market-place. But it appears that there is limited demand for products that do not offer a capital guarantee. SG, the investment banking arm of Société Générale, appears to have found this out to its cost with Sapphire, part of its new ‘Gemstone’ range of products for 2002. Instead of a guarantee that investors will get 100% of their capital back if stock markets fall, Sapphire offer

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