Credit Suisse Hedging-Griffo (CSHG) has launched the Brazilian retail market's first currency-linked product.
CSHG Dólar Double Range Capital Protegido, issued by CSHG, is a three-month, capital-protected fund featuring a triple range structure linked to the exchange rate of the Brazilian real against the US dollar.
On maturity, the product returns 100% of the capital invested, plus 135% of the interbank deposit rate (CDI), provided the underlying has remained within one of three ranges by maturity. Otherwise, the fund simply returns capital. As SRP went to press, the CDI rate was 8.62% pa.
The fund marks a number of Brazilian firsts for the retail structured products industry, in its structure, its short term and its underlying.
Nine out of every ten structured products in Brazil are linked to the Ibovespa, and none, until now, have a maturity shorter than six months.
Year-to-date, the Brazilian real has appreciated 20% versus the dollar, going from 2.31 in January to 1.84, as SRP went to press.
The product will be offered to retail investors until 21 August, with a minimum investment of BRL50,000 ($27,000).
This product is available now in Recent Additions (Brazil).