Investec digital note offers choice of counterparty

Investec has launched a six-year digital growth product linked to the Euro Stoxx 50 that puts capital at risk if a barrier is breached. A collateralisation mechanism means investors can choose between Investec or a selection of banks as counterparty

Investec is offering investors in the UK two versions of a six-year structured product linked to the Euro Stoxx 50 index that includes a digital-style payout. The product will pay a fixed return at maturity so long as the index finishes at a pre-defined level.

Potential returns will depend on whether investors choose the Investec-backed version or the collateralised version. In the first, investors can obtain a fixed return of 95% if the index has not dropped by more than 10% from its initial