BNP Paribas has structured a new market-linked certificate of deposit (MLCD) using as underlying a basket of stocks selected from the Richard Bernstein Advisors (RBA) Global Dividend Kings universe. The MLCD will be issued by BNP Paribas's retail arm, Bank of the West.
"We are excited to be bringing our relationships with RBA into the MLCD domain and believe that this product's exposure to a basket selected from the RBA Global Dividend Kings universe will help deliver increased value to our clients," said Franck Bertoneche, head of structured products sales at BNP Paribas Securities Corp. in New York.
The seven-year income advantage MLCD with a minimum annual interest payment is the first MLCD linked to a RBA-selected equity basket structured by BNP Paribas since a license agreement for the French bank to use RBA's intellectual property to offer select MLCDs and market linked notes was struck in August 2013.
"We utilize several screens to ensure a high quality, conservative income portfolio for the Global Dividends Kings," said Richard Bernstein, chief executive of RBA. "We are pleased that BNP Paribas and Bank of the West see value in RBA's unique proprietary research and investment approach and look forward to continuing this relationship."
BNP Paribas plans to launch the MLCD later this month.