Deutsche Bank has started pitching non-principal protected structures in the U.S. Karen Fang, v.p. in the structured products, global equities division in New York, said the move is a natural extension of the firm's principal protected activity through which it sells equity-linked notes. It started offering equity structured products in the U.S. at the beginning of the year (DW, 1/12).
The new program adds market contribution notes (MCNs) to the firm's product platter, designed to allow investors to further enhance yield, said Fang. Types of MCNs offered by the firm include reverse convertibles, which offer a high coupon in return for forgoing the upside of the underlying, discount notes, which cap the upside potential, as well as double opportunity notes, which offer leveraged participation of as much as 200%-300% of the upside performance of the underlying market within a defined range, she said.
