Product performance
FVC’s analysis of 10,000 US reverse convertibles based on neutral, high and low growth, and high and low volatility reveals that the majority of these products gave the best returns in low volatility environments. As well as a reverse convertible, FVC explains the SPDR Gold Trust- and Eurostoxx 50-linked products reviewed this month in Structured Products magazine.
The products reviewed this month include a five-year principal protected product linked to the SPDR Gold Trust, an accelerated growth product linked to the Eurostoxx 50 index, and a reverse convertible linked to Flextronics International.
The link to the SPDR Gold Trust is popular in the US, particularly for principal protected. The specific product reviewed in this issue has a five year term, a gearing of 100% and a cap at 13.6% (in addition to return of principal). It has been priced with a
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