Societe Generale has come to market with a six-year, at-risk income product that is linked solely to the FTSE 100 index. Investors will receive 1.5% per quarter and capital will not be returned until maturity.
The maximum that investors can gain is a 36% return on capital at a rate of 6% per annum. To achieve this, the FTSE 100 would have to be at least 85% of its level at the strike date on every quarterly observation date. For each quarter that the index is above the required level, investors