The trade has two parts: first, a one-year fixed deposit which matures in 2010 and pays a 4% plus return of capital, which also has an option to transfer the proceeds of the deposit for a further year in the same investment. Second, a six-year 100% principal protected FTSE-linked which is designed to provide 100% exposure to the index subject to a cap of 60%.
The FTSE-linked trade also has an early redemption feature in years four and five. If at the end of year four the index is at 130% or more
The week on Risk.net, July 7-13, 2018Receive this by email