ABN Amro's return to the Dutch market for leveraged products with the turbo has been very successful, according to the bank's head of turbos and certificates Jan Erftemeijer.
"Not only the products with ABN Amro as the issuing company, but also the delivery has been well received by investors," he said.
The re-introduction of the banks products, which involves an online marketing campaign and nationwide seminars with market experts, sees Goldman Sachs acting as market maker, instead of the bank's own platform. "Goldman Sachs can be considered as one of the leading parties in the market," Erftemeijer said. "Due to this collaboration we are able to price our turbos more competitively with bigger issue sizes. Because of this the liquidity of ABN Amro products becomes significantly higher," he added.
As ABN Amro's business that issued the leverage products belonged to parts of the bank that were acquired by RBS, turbos and certificates (formerly issued by ABN Amro Markets) have, since May 2009, been sold under the RBS logo via RBS Markets, although the legal split only took place in February 2010.
Since the beginning of October, however, ABN Amro has started selling turbos again under its own brand. At the time SRP went to press the bank had launched 617 turbos in the Netherlands, ranging from single indices (112) and shares (236) to commodities (146), FX Rates (38) and interest rates (10).
These products are available in Leveraged Products (The Netherlands).