The decrement methodology has featured across different index strategies – thematic, ESG, single stocks – underlying 421 structured products over the last two years.
Decrement or synthetic dividend overlays used in indices underlying structured products have grown and increased their market share across markets - especially in France - since early 2020 when the dividend crisis triggered by the Covid 19 first lockdown reverberated through the market. A decrement overlay is represented as a constant markdown or 'decrement' applied to the index. The decrement overlay is constructed by periodically deducting a predefined fee, either in the form of a fixed perc
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