Product performance
Structured products do not always offer the full upside in share performance. Ford Motor stock has risen by 40% since last July, and investors will get a decent return, but not as much as they would have received from a direct investment in the shares
The first of the product valuations for this month is a one-year reverse convertible linked to the stock of Ford Motor Company, which was the most popular underlying (by notional amount) for such structures in the US in December 2010, accounting for 30% of notional sold of this product type.
The product has an 80% barrier, which means capital is at risk if the final level of the stock is below its starting level. There is a coupon of roughly 15.8% per annum regardless of the movement of the
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