We look at the shark fin payoff type and how it fits the risk profile of investors looking to generate returns from moderate underlying growth with capital protection.
The shark fin payoff its distinctive by its shape and is defined as a product which pays a positive performance linked return as long as the barrier is not breached. If the barrier is breached the payoff is a fixed payment which is usually much lower than the maximum underlying linked return. Plotting this payoff on a chart gives the recognisable shark fin shape and is illustrated later in this article. The top three countries for issuance of shark fin structures are China, South Korea and Bra