Deutsche Bank has introduced its first two equity-linked notes in the U.S. and is planning to launch a slew more, one every two weeks. Karen Fang, v.p. in the structured products, global equities division in New York, said the new issues extend the firm's global structured products reach to U.S. investors, with similar products being already available in Europe and Asia. While the first two notes give participation in the Standard & Poor's 500 index, other indices, including the NASDAQ-100 and Russell 2000 will also be used in future products, she added.
The firm's three- and five-year notes, which closed in December, offer investors 100% principal protection at maturity. Both issues are subject to being called by Deutsche Bank before maturity, with the five-year note, for example, having four callable dates, standing at 110%, 120%, 130% and 140% after one, two, three and four years respectively. The addition of the callable dates allows gains to be made in spite of the low interest rate environment, Fang noted. Future issues will offer more exotic structures, with different payout features being offered, she added, declining to give further detail. The notes are distributed to high-net-worth investors through Deutsche Bank Private Wealth Management and Deutsche Bank Alex. Brown.
