Citigroup is planning to offer a partially guaranteed structured note using a constant portfolio proportion insurance structure to provide the capital protection. The firm believes this will be a first for the Korean retail market. "This is a way to enjoy exposure to both bonds and equities," said S.B. Hwang, head of derivatives marketing at Citi in Seoul.
Hwang explained the firm is looking to structure notes with 80-90% capital protection that will shift allocation between the KOSPI 200 index and domestic government Treasuries depending on market conditions. Citi is eyeing a launch date by year-end with maturities of one-to-two years.
