Macquarie Bank is gearing up to offer a cross-asset class structured note with exposure to credit, hedge funds, commodities and properties which it believes will be a first for the domestic Australian retail market. While the product is in the initial development phase, the bank is modeling different mixes of commodities, credit-default swaps, fund of funds, infrastructure projects and property to incorporate into a capital guaranteed structure.
Craig Swanger, head of structured products and alternative investments at Macquarie in Sydney, said, "It's a case of alternative investments gaining acceptance quickly in Australia and we want to bring out an entry-level type of investment." The structure will be launched in the next three months or so, pending government approval. The typical size for capital guaranteed product launches is between AUD50 and AUD150 million (USD37.7-113.3 million).
