Product retrospective: Coupons for inflation
In September 2008, Structured Products published a review of the Merrill Lynch three-year euro and Swiss Franc Inflation Linked Booster, which offered additional coupons depending on the relevant inflation rate
These inflation-linked products are similar in design but were linked to different inflation indexes. One product is offered in euros and links to the Eurostat Harmonised Indices of Consumer Prices (HICP). The second is offered in Swiss francs and links to the Swiss Federal Statistical Office (FSO) Consumer Price Index (CPI). Both products offer fixed coupons (above their respective risk-free rates) with the possibility of additional variable coupons if the relevant inflation rate exceeds 2.5%
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