Due to current vol across most asset classes, I am seeing a lot of requests for capital protected products with a short time frame. One of the best solutions to this is the "Call Up and Out". This type of note gives you 100% participation to the increase in an asset class, up to a barrier. If the barrier is hit at any point, the investor is "knocked out", and receives a "rebate" coupon as compensation.



So for example, in GBP...



12 months CUO

100% capital protection (AA- rated bank)

100% participation to any upside in the S&P 500, to a barrier of +17%

Rebate coupon of 1%



So client gets the return of the S&P 500 over 12 months, as long as it doesn't increase by more than 17%. If this occurs he just recevies a 1% return. If the S&P 500 falls, he just gets his cash back.



We have also introduced a slight twist to the product, which is that when you start you actually have an in the money option. So you have a strike at 90% of the current index level, meaning that even if the index goes sideways, you will get a 10% return.



I'm not trying to sell these on this forum, but just trying to show what is out there.



Have a nice day!

EUR Bear Do & Out Protected

Underlying: DJ Eurostoxx 50

120% to the negative performance (absolute value) of the index with no averaging down to a 80.01% level with a 4% rebate if the 80% D&O level is triggered.

Full Capital Protection

Bienarrose, that's a nice alternative! Although might be nicer to recued the rebate slightly and make the option in the money?

Is your idea over 18 months? What's the issuer rating?

G Kid

Check your email, image attached of the issue with codes

I think you will find the issuer suitably rated

HK

Some more for your perusal, received today





USD 3 year Up and Out Growth



Underlying - Google

Participation - 100.00% to the positive performance of the underlying

Up and Out level - 100.00% level, accumulated participation is lost if 145.00% level is reached

Rebate - 6.50% if U&O level is reached

Protection - Full Capital Protection

Reoffer - 99.50%



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EUR 3 year Up and Out Growth



Underlying - Ericsson

Participation - 100.00% to the positive performance of the underlying

Up and Out level - 100.00% level, accumulated participation is lost if 145.00% level is reached

Rebate - 5.50% if U&O level is reached

Protection - Full Capital Protection

Reoffer - 99.00%



There are quite a few A's in the issuers S&P rating

They are not bad, but on a 3 year CUO the deltas are going to be fairly low for quite some time, so you really need to have a strong 3 year view on the stock and it's movements.

If you have such a strong view on an individual stock, I'd suggest a Sprint or a Turbo.