Société Générale plans to continue rolling out capital guaranteed securities based on the performance of a range of international markets over the coming months following its recent launch of the first such product in the Australian market. Moghseen Jadwat, associate director in Sydney, said that falling equity markets are driving demand for capital guaranteed products, such as SG's capital protected equity-linked securities (CaPELS).
In the CaPELS structure, upside participation is limited to a 20% gain per annum over the five-year life of the security, Jadwat explained. He declined to detail what SG invests in to provide the capital guarantee.
SocGen recently came to market with CaPELS linked to an underlying basket of international stocks, including AOL Time Warner, Sun Microsystems and Sony.
