Nordea has launched the first ever exchange-traded credit-linked notes “Korkotodistus” on the Nasdaq OMX Helsinki in a move to target a wider audience of investors.
Nordea is following a Nordic trend where credit-linked notes have been traded through local exchanges. “We have an excellent experience from Sweden, where “Räntebevis” products have been offered through an exchange for a long time,” said Tarja Myyryläinen (pictured), head of structured products, Finland, at Nordea. “In Finland we have offered “Korkotodistus” only to Nordea’s clients while now these are open for trading for other investors’ through the exchange.”
In Sweden, said Myyryläinen, providers use exchanges to offer their products, as opposed to Finland where the trend has been towards an increase of non-listed products in recent years. “In future the aim is to bring more “Korkotodistus”-products in addition to these two, and maybe someday we will bring also other kind of products to be traded on the exchange,” said Myyryläinen.
SRP data shows that there has been 57 “Räntebevis” products since year 2012 for Nordea Sweden. In Finland Nordea has launched 45 Korkotodistus-products since 2012.
The products are Korkotodistus Eurooppa High Yield 7/2020 and Korkotodistus Pohjois-Amerikka High Yield 7/2020. The products have conditional capital protection but also capital at risk when these are linked to credit defaults in Markit iTraxx Europe Crossover and Markit CDX North America High Yield respectively. The products offer a coupon equal to 3 months Euribor plus 3.6% and 4.2% respectively.
Nordea has been the leading Finnish and Swedish market player of recent years.
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