Abbey note linked to house prices returns capital only

A structured product launched in 2007 by Abbey that was based on the Halifax residential property index has matured, but improved performance in the final two readings was not enough to reward investors with more than their initial capital

HHPI index was below strike for most of product's life

In January 2007, Structured Products published a report on the Abbey Residential Property Bond Issue 5. The product had a 7.5-year lifespan and offered 1.25 times any rise in the Halifax House Price Index (HHPI) from the strike date of January 26, 2007. Initial capital was protected and there was no cap on returns, so if the index rose by 20% from the strike date, investors would receive their capital back at maturity plus a 25% return from growth in the HPPI. The final level of the product was