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    Terms and Conditions: Wedding Cake

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    DessyLilya Meet
    HSBC Mexico has launched a new structured capital-protected certificate of deposit called a "wedding cake". It offers full capital protection plus an additional coupon if the USD/MXN exchange rate stays within one of two predetermined ranges over 49 days. Alternatively, investors will receive their capital back plus 1% annual interest if the rate falls outside both ranges. The "wedding cake" structure provides attractive returns with limited downside risk in a low volatile FX market. HSBC plans to issue more products with similar payoff structures.

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    Terms and Conditions: Wedding Cake

    Uploaded by

    DessyLilya Meet
    33 views2 pages
    HSBC Mexico has launched a new structured capital-protected certificate of deposit called a "wedding cake". It offers full capital protection plus an additional coupon if the USD/MXN exchange rate stays within one of two predetermined ranges over 49 days. Alternatively, investors will receive their capital back plus 1% annual interest if the rate falls outside both ranges. The "wedding cake" structure provides attractive returns with limited downside risk in a low volatile FX market. HSBC plans to issue more products with similar payoff structures.

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    Mixed Wedding Cake

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    HSBC Mexico has launched a new structured capital-protected certificate of deposit called a "wedding cake". It offers full capital protection plus an additional coupon if the USD/MXN exchange rate stays within one of two predetermined ranges over 49 days. Alternatively, investors will receive their capital back plus 1% annual interest if the rate falls outside both ranges. The "wedding cake" structure provides attractive returns with limited downside risk in a low volatile FX market. HSBC plans to issue more products with similar payoff structures.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    33 views2 pages

    Terms and Conditions: Wedding Cake

    Uploaded by

    DessyLilya Meet
    HSBC Mexico has launched a new structured capital-protected certificate of deposit called a "wedding cake". It offers full capital protection plus an additional coupon if the USD/MXN exchange rate stays within one of two predetermined ranges over 49 days. Alternatively, investors will receive their capital back plus 1% annual interest if the rate falls outside both ranges. The "wedding cake" structure provides attractive returns with limited downside risk in a low volatile FX market. HSBC plans to issue more products with similar payoff structures.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Wedding Cake

    Wedding cake deposit


    A type of Range Deposit where there is an inner Range and one or more outer ranges. The payout from the product is at
    its maximum when the Underlying remains in the inner Range, and this is reduced successively when the Spot reaches
    each outer Range. This product is suitable for investors who have a Range-bound view, and want to take less Risk.
    Posted by  Privatebanking.com

    High-quality journalism and data requires investment. Copying, pasting, screenshots and
    taking photographs of SRP full articles and images is strictly prohibited. Please refer to our
    Terms and Conditions. For more information, please contact us on
    [email protected]

    HSBC has released a new structured capital-protected certificate of deposit linked to the
    performance of the USD/MXN exchange rate in the Mexican market, its first 'wedding cake'
    combining a digital/range payoff profile issued by HSBC Mexico in its history.

    The 49-day deposit offers full capital protection at maturity plus an additional coupon if the
    underlying stays within one of two predetermined ranges at all times during the investment
    period. Otherwise, in the worst possible scenario, investors will receive a capital return of
    100% plus 1% pa if the underlying falls out of both ranges.

    Wedding Cake Peso/Dollar - 6.8% pa - 02 August 2012 sold MXN82.85m ($6.26m)


    during its subscription period.

    According to a source working on the structured products desk at HSBC Mexico, the
    wedding cake structure provides an alternative for attractive returns without assuming too
    much risk in a low volatile FX rate market. The primary incentive for the launch was to
    provide clients with more diversity in their portfolios.

    HSBC is planning to issue similar pay-off structures in the upcoming months.

    SRP data shows that HSBC Mexico has launched 26 range accrual products so far this year
    and it is currently holding a 6% market share, falling just behind BBVA Bancomer, Monex
    and Citi.

    Among the wide range of Derivative products managed by


    Monex, we have an investment alternative for surpluses of
    treasury departments or individuals that seek to get higher
    returns than those of the money market:

     Minimum term investments starting at 7 days (liquidity advantages).


     Investments in MXN, USD and EUR.
     100% or partially guaranteed capital, based on specific needs.
     Returns that are possibly higher than those of the money markets.
     Investments linked to different underlying assets, such as: USD/MXN, EUR/ USD,
    EUR/MXN, stock market indexes, amongst others.

    Main types of Structured Notes:

     Dual Bonus
     Accumulative Range
     Wedding Cake
     Double No Touch
     Amongst others…
    https://www.monex.com.mx/portal/corporate-banking/27/investment-structured-notes

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