Leveraged return super trackers back

Demand for leveraged call spreads, commonly referred to as super trackers, with highly geared upside and soft protection, is slowly coming back. Investors are looking to diversify counterparty exposure away from high street banks and inflation growth plans are proving to be a hit, UK market participants say

UK structurers follow the trend of leverage call spread structures as market volatilities descend

Leveraged return structures based on a wide range of underlyings have returned to prominence in the UK.

In collaboration with Credit Suisse, Gilliat launched a structured leveraged call spread with a cap on the maximum return of 7.5% on the rise of the FTSE. The capital gained through the investment is capped at 75%. This means that at the end of the six years, if the FTSE finishes at higher than 75%, the product will do as well as the market. If the market goes higher, because of the cap, the