Analysis of FTSE 100 decrement indices highlights how yield- and point-based methodologies shape structured product performance, with both approaches supporting enhanced returns and no losses observed across matured products to date.
An equity decrement index is a modified version of an index where the actual dividend stream is replaced by a fixed and predefined amount. The fixed amount is deducted from the asset’s total return at a constant rate. Decrement versions of major equity indices like the FTSE 100 have been widely used as underlyings in structured products for years Decrement versions of major equity indices like the FTSE 100 have been widely used as underlyings in structured products for years, and their