Barclays has joined Citi, Morgan Stanley and Investec as the only structured products providers in the UK market offering structures to retail investors which have been collateralised using gilts in order to diversify counterparty exposure.
"With the market reacting to fresh concerns over the future of the eurozone pushing volatility higher, we have recently been able to secure an attractive potential return for this popular genre of investment," said Lisa Chaudhuri (pictured), UK Investor Solutions, Barclays. "Should the market fall continue, the starting date in June could prove to be an attractive entry point."
The Barclays FTSE100 Autocall is a six-year 50% soft-protected knockout product linked to the performance of the FTSE100 index. The product will mature early paying out 8.25% per period elapsed if the underlying index is at or above its strike level at any annual observation date. Capital is at risk one-to-one with the underlying if the 50% downside barrier is breached at maturity.
The product will be open for subscription until 1 June.
SRP data shows that 24 Gilt-backed structures have been marketed in the UK market since the end of 2008, with an estimated sales value of £83.8m.
Citi was the first provider to bring such a product to the UK market via its Symphony FTSE Gilt Backed Defensive Autocall 15% which matured early after one year, paying out 115% of initial capital.