Retrospective: Avoiding the barriers
This JP Morgan product from November 2008 linked to a basket of four Asian indexes and promised a 2.05% quarterly income payment. In the event of a kickout, however, capital was placed at risk and the amount returned to investors would depend on the worst-performing index
The second retrospective analysis this month is a capital-at-risk product linked to four Asian equity indexes: the MSCI Singapore Cash IX, China’s Hang Seng China Enterprises, Hong Kong’s Hang Seng and the MSCI Taiwan. The product pays a fixed coupon of 2.05% quarterly provided no kickout has occurred. If all four indexes are equal to or higher than their initial levels on any observation date, the product kicks out, resulting in an income payment for the previous quarter plus repayment of
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