Product performance

In review this month are a five-year principal-protected product linked to the FTSE 100, a five-year accelerated growth product linked to the iShares MSCI Brazil Index Fund and a one-year reverse convertible linked to Ford Motor.

The principal-protected product has 87% gearing linked to the FTSE 100. Looking at the graph, from the end of the April the price of the product mimics and is higher than the spot of the underlying. Considering the structure of a typical principal-protected product, the price should reflect the spot in most circumstances. However, the price of the structure is sensitive to the prevailing interest rate and volatility levels.

For the period up to the end of April, rates increased and volatility

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here