Merrill Lynch is launching the first principal protected credit-linked note available to retail investors in Singapore. The Jubilee LinkGain Note is a retail-oriented spin on an investment idea that already exists for private banks and high-net-worth clients. It is aimed at investors looking to diversify away from traditional savings products such as fixed deposits or endowment plans.
An investor will do well provided the credit environment remains benign over the next 10 years. Volatility would mean they still get their money back, after 10 years, which would represent a loss against inflation.
ôWe believe that the local market is ready to embrace higher yielding credit-linked investments with the safety of principal protection,ö says Singapore-based...
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