Duke of Marmalade
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12 Banks including AIB, BoI, Barclays etc. (not Anglo though)
4 years term with 6 months averaging - growth of each bank is capped at 33.5%; they are all added up including any negatives and then averaged.
The return on the bond is 1.5 times this average i.e. a max return of 50.3% = 10.7% CAR. Capital is guaranteed.
Any views?
My view - the key "trick" here is that each bank is capped at 33.5% so every single one has to hit this level to get the max pay-out. That is not likely and in any case 10.7% CAR isn't exactly shooting the lights out.
4 years term with 6 months averaging - growth of each bank is capped at 33.5%; they are all added up including any negatives and then averaged.
The return on the bond is 1.5 times this average i.e. a max return of 50.3% = 10.7% CAR. Capital is guaranteed.
Any views?
My view - the key "trick" here is that each bank is capped at 33.5% so every single one has to hit this level to get the max pay-out. That is not likely and in any case 10.7% CAR isn't exactly shooting the lights out.