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Derivatives

Anglo Irish Markets Hybrid Bond

Private bank Anglo Irish Bank Isle Of Man is marketing a novel hybrid bond which combines currencies, equities and commodities.

Private bank Anglo Irish Bank Isle Of Man is marketing a novel hybrid bond which combines currencies, equities and commodities. In the sterling-based structure, investors receive 180% of the rise in the basket, which consists of the FTSE100, oil exposure and a punt that the U.S. dollar will strengthen against sterling. The four-year bond is structured using a zero coupon bond and a basket option to offer 100% capital protection.

Gary Quaggan, head of investments at Anglo Irish Bank Isle of Man, said, "This is a new product for Anglo." He added, "We thought the market needed something slightly different." Bear Stearns is the counterparty on the trade. Anglo Irish chose the U.S. house because they have worked together on structured products in the past and have a good relationship. The bond closes to investors on April 4 and is available globally.

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