Our Offering
Strategy
Most popular structured products like equity linked notes (ELN) involve a 'Knock-out barrier' on the upside in exchange for high coupon payment when the issuer calls, and a 'Knock-in barrier' on the downside when the underlying benchmark drops below a certain level for the investor to receive the benchmark performance. This combination is known as the KIKO feature.
More specifically, Wall Street invented this type of product since the early 2000s — called the 'AutoCallable / Reverse Convertible'. The underlying benchmark can be an index, single-name equity, or a worst-of indices/equities basket. Other asset classes can fit into similar product designs.
Paramita Capital can advise on:
(I) Product selection for suitable yield enhancement for agency-channel clients.
(II) Liquid alternative replication and execution for SMA clients to greatly reduce the agency commission charge.
Please contact us for more details.