Ultra Defensive Note at 10%pa

20 Feb

We continue to see demand for new structured notes to replace redeeming products. Also, given the current level in the markets many investors prefer to sacrifice taking a risk for a more defensive structured note call schedule.

Structured notes have been very successful this year with 5 already cashing in early and giving clients excellent returns. The notes to already pay out this year are as follow.


Note Coupon US$ Date Duration
RBS Autocallable 31 15.0 07/01/2013 6 Months
MS EM Autocallable 16.0 23/01/2013 6 Months
RBS Autocallable 32 13.5 04/02/2013 6 Months
RBS Autocallable 24 16.25 11/02/2013 12 Months
MS EM Autocallable 20.0 13/02/2013 12 Months


Now with the markets at good levels we have launched a new Ultra Defensive autocallable note with a potential 10% pa return in sterling . The note is callable annually (from the end of year 2) as long as the chosen markets are above it’s initial strike level. However that autocall barrier steps down to 70% in year 6 – ie, if the note has not previously autocalled, as long as the chosen markets are above 70% of the initial strike level in 6 years time, the note will redeem at 160% (6 x 10%).

Main points

A coupon of 11.25% p.a (US$), 10.00% p.a (GBP) paid after 2 years and early maturity if indexes are equal to or above starting levels

  • If indexes are not equal to or above starting levels after 2 years, product rolls to years 3, 4 and 5 with the potential for an additional  11.25% p.a (US$), 10.00% p.a (GBP) and early maturity at each anniversary
  • Final cumulative payments of 67.5% (US$), 60% GBP will still be paid at maturity if indexes are at least 70% of their starting levels
  • Investments linked to FTSE 100, HSCEI and Eurostoxx 50
  • 30% protection barrier
  • 6 Year maturity with full return of capital less initial charge if protection barrier not breached on maturity date.




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