Deutsche Bank Markets High Participation Global Basket
Deutsche Bank has priced a global basket product with 150% participation and 100% capital protection.
Deutsche Bank has priced a global basket product with 150% participation and 100% capital protection. This is compared to the 115% participation possible on the FTSE100 and is only achievable because volatility on the indices in the basket has reached new lows. The basket offers investors exposure to the Euro STOXX 50, Standard & Poor's 500 and Nikkei 225.
Stephen Birkwood, v.p. in structured products marketing in London, noted this rate of participation has not been possible for around 50 years. "It's a great opportunity," he said. The product is aimed at retail investors, but Birkwood said their preference for income rather than growth products may mean they pass over the opportunity. If the same product is structured with an annual coupon, the investor will have less potential participation in the underlying indices, said Birkwood.