Israel’s most active structured products providers have entered the summer season with an expanded catalogue.
Bank Leumi has increased its regular monthly issuance by two products a month, from the one a month it launched over the first half of the year.Euro Deposit TA-25 Index and Euro Deposit Cac 40 Index are 1.5-year capped call products linked to the Tel Aviv 25 index and the French Cac-40 index, respectively. Both products offer 100% participation in the rise of their respective underlying indices over the investment term, provided a 29% cap is not reached. If, however, the protection barrier is reached during the life of the product, a 7.5% fixed coupon is paid (7.75% for the Euro Deposit Cac40 Index) alongside the invested capital. Both deposits will be available until 30 June for a €10,000 minimum investment.
Bank Leumi also closed the offer period on its first callable product last week, a three-year structured dollar deposit offering hard protection on the initial investment and fixed annual coupons of 3.85%, 3.95% and 4.05%. It is liable to be withdrawn by the bank at any time during the term.
Bank Hapoalim, on the other hand, is marketing five structured retail products provided by its Pam Global Investments division. Hapoalim’s June offerings include a range of third parties, including JPMorgan, Natixis, Morgan Stanley, Commerzbank and Merrill Lynch. Hapoalim’s strategies include equity stocks (JPMorgan Chase Bank, Goldman Sachs and Morgan Stanley), an equity index (Nasdaq), the ten-year minus two-year EUR swap spread, and a basket of soft commodities (comprising soya, wheat, corn and sugar).
USD US Banks Autoredeemable Note is a five-year growth product with a knockout option, that pays a fixed 14.5% coupon for every year in which the worst-performing stock in the basket is above its initial level, while USD Nasdaq Capped Participation Note is also a US dollar-denominated five-year product offering full capital protection and 100% participation in the rise of the Nasdaq index with a 52.75% cap. Both products are available until 9 July for a minimum investment of €50,000.
Hapoalim is also closing three products on 16 July: its USD Soft Commodities Autoredeemable Note, which pays a 2% (8% AER) coupon for every day on which the price of each basket component is above 85% of its initial value; the EUR Callable Spread Range Accrual Note, a five-year product linked to the ten-year minus two-year EUR swap spread; and the Canadian dollar-denominated Cad Simple Step Up Note.
All five Hapoalim Bank products require a minimum investment of USD/CAD/EUR50,000.
Click here to see an example of a product from Bank Leumi.
Click here to see an example of a product from Bank Hapoalim.