The international department of Taipei-based securities house Fubon Securities is looking to structure notes that combine components of fixed income and equity derivatives to provide a leveraged capital guaranteed product with leverage. "No one has done this yet in Taiwan," said Chi Huang, v.p. in the international department.
The move is conditional on the government passing the Financial Holdings Bill this week, Huang explained. This would allow Fubon to form a holding company and cross-sell various products, including derivatives, between its asset management, futures, securities and insurance divisions.
Fubon is talking with potential clients about the structured notes, according to Huang. There is huge appetite for capital guaranteed products in Taiwan at present as investors are increasingly looking to hedge downside risk.
