Structured products and strike levels.
The FTSE 100 is down over 30% month to date, and greater from index highs.
Strike levels can be seen as both a merit and a downside to structured products. For those of you who are not familiar with the strike level (reference level) of an index/stock, it is set on the day in which the investment strikes. All the component parts of the investment are based upon that reference level, this is why it is simple to understand the outcomes as you can calculate quite simply what level the Index/Stock is. From this reference point you can then calculate your product barrier levels and whether the product will Kick-out/Continue/lose capital.
The likelihood is that current structured products that are available in the market are going to strike with the lowest levels seen in years. This presents a unique opportunity for investors and with the plans detailed below, you could have the opportunity to lock in terms that could return rates of up to 14.5% a year with the lowest strike levels seen in over a decade. (Every cloud offers the potential of a silver lining!)

Dura Capital have recently launched plans 43 & 44 in addition to their current plans 41 & 42.
43 – Credit Suisse FTSE 100 Quarterly income autocall plan 43 – 1.71% quarterly income payment if the FTSE 100 has not fallen by more than 25% of its reference level on each quarter – so for income payments to stop the index would need to reduce by more than 25% from the strike level! For more information on this plan please click on the following link:
https://www.bestpricefs.co.uk/structured-products/ftse-100-quarterly-income-autocall-plan/
44 – Natixis FTSE 100 Autocall plan 44 – 14.5% p.a. if the FTSE 100 is at or above its reference level on 8 specified dates. For more information on this plan click on the following link:
https://www.bestpricefs.co.uk/structured-products/ftse-100-autocall-plan-44/
For those of you who follow structured products you will be familiar with a number of banks including Credit Suisse; Natixis may be a name you are not familiar with, however, we have included some information.
Natixis is the corporate, investment, insurance and financial services arm of Groupe BPCE – the second-largest banking group in France with 31 million clients spread over two retail banking networks ; Banque Populaire and Caisse d’Epargne. With more than 16,000 employees in 36 countries, Natixis has a number of areas of expertise, serving clients across EMEA, the Americas and Asia-Pacific
A summary of all the plan details are below.
Credit Suisse FTSE 100 Quarterly Income Autocall Plan 43

This Plan is designed to repay your initial investment and generate income dependent on the performance of the FTSE 100.
- Potential income of 1.71% quarterly, first Autocall Date is end of quarter 8 (quarterly thereafter)
- Dependent on the performance of FTSE 100
- 60% capital at risk barrier at maturity
- Maximum term 8yr maturity
Potential income: 1.71% per quarter if the Index closes equal to or above 75% of its Initial Index Level.
If at the end of any quarter from the end of quarter 8 onwards, the Index is equal to or above 100% of its Initial Index Level the Plan will Autocall (mature) returning your initial investment plus the income payment.
Capital repayment: If the investment has not auto called and at the end of the 8-year term the Index is below 75% but equal to or above 60% of its Initial Index Level, you will receive your initial investment back only. However, if the Index is lower than 60% of its Initial Index Level, you will lose money and your initial investment will be returned minus 1% for every 1% fall in that Index
Your Investment is at Risk:
If the Plan runs for the full term and the Index finishes lower than 60% of its Initial Index Level (i.e. the Index has fallen more than 40% from the strike point), your initial investment will be reduced by 1% for every 1% fall in that index.
Who is the Plan Aimed At?
This plan is targeted at investors who are looking for a high level of income over an 8-year period but can accommodate receiving their money back before the end of the term. The frequency of income payments is not known, and investors should not be reliant on these income payments to meet living expenses.
Investors should be prepared to risk their capital in order to potentially receive a higher level of income. Investors should be able to understand that both their return of capital and payment of their income are linked to the FTSE 100.
Natixis FTSE 100 Autocall Plan 44

This Plan is designed to repay your initial investment and deliver a return dependent on the performance of the FTSE 100.
- Potential return of 14.50% p.a.
- Dependent on the performance of FTSE 100
- 65% capital at risk barrier at maturity
- Maximum term 8yr maturity
If at the end of year 1, 2, 3, 4, 5, 6, 7 or 8 the Index is equal to or above its Initial Index Level, the Plan will autocall (mature) returning your initial investment plus a fixed return equal to 14.50% p.a. not compounded.
If at the end of 8 years the FTSE 100 Index is lower than 100% of its Initial Index Level, your investment will have earned no return.
Your Investment is at Risk:
If the Plan runs for the full term and the Index finishes lower than 65% of its Initial Index Level (i.e. the Index has fallen more than 35%), your initial investment will be reduced by 1% for every 1% fall in that index.
Who is the Plan Aimed At?
This Plan is targeted at investors who are looking for equity-linked returns over an 8-year period but are comfortable that the investment may mature early.
Investors should be prepared to risk their capital in order to have the potential of achieving higher returns. Investors should be able to understand complex products and the risks associated with this investment.
We think the ‘contract terms’ and rates are certainly worth considering.
Don’t Forget the Risks
https://www.bestpricefs.co.uk/dura-capital-structured-products/#risks
As with all forms of investment there are risks involved. These plans do not guarantee to repay the money invested. The potential returns of the plans and repaying the money invested are linked to the level of the stock market and also depend on the financial stability of the Issuer and Counterparty Bank.
The promotion of the plans does not constitute ‘advice’ to invest. Advice is always specific to an individual investor’s circumstances and needs, following the process of ‘know your customer’, with the aim of ensuring that any product is suitable for an investor.
As always, the recommendation and common sense approach is to consider product solutions as a portfolio, never over-exposing oneself to a point of financial pain and suffering liquid or counterparty exposure.
As always, if you require advice simply get in touch.
Stay safe, stay healthy.
Very best wishes at this time.
Best Price FS Team |