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Derivatives

ABN AMRO Banks On Dutch Weather For Deposit

ABN AMRO has structured a deposit linking the interest of the account to the amount of sunshine in the Netherlands this summer.

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ABN AMRO has structured a deposit linking the interest of the account to the amount of sunshine in the Netherlands this summer. Catherine Woolgar, weather derivatives pro at ABN AMRO in London, explained that the deposit, which is being offered to Dutch retail investors, pays out a higher rate of interest in the event of a cold summer. The structure is attractive to investors as it offers the potential of high returns in a low interest-rate environment, she said. The deposit also offers something of a win-win situation as investors losing out with a lower return still have the benefit of great weather, while those suffering through a cold summer can drown their sorrows with their extra income.

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