Citigroup in Australia has structured a principal protected note referenced to global equity markets, because some local investors think the domestic bull run is about to end. "Investors want more exposure to overseas markets and assets," according to Luke Randell, managing director in trading and derivatives at Citi in Sydney. Australian equities are up over 20% this year and some end users believe these levels are unsustainable.
"It's been a good run, but we could start seeing interest wane and perhaps see more allocations to other countries in the region where markets should continue to be robust," noted a rival equity head.
