Société Générale has expanded its memory express certificates product range with the addition of new European indices to offer an alternative to Eurostoxx50-linked certificates commonly used by issuers in the German market.
Following the introduction of the FTSE MIB and the Ibex35 in April, Société Générale’s latest range of memory express certificates rolled out at the beginning of June features the Eurostoxx Banks index for the first time in this product range alongside the Italian and Spanish benchmarks, as well as the Stoxx600 Basic Resources and the Eurostoxx Utilities indices.
Peter Bösenberg, director and head of public distribution Germany and Austria at Société Générale, told SRP that the introduction of the new benchmarks is aimed at providing higher potential returns.
“With these underlyings we can offer higher coupons than 4% p.a. which are currently offered on Eurostoxx50 linked structures”, he said. “We believe the Italian, the Spanish and also the French market are the markets with higher potential in terms of equity growth and therefore the Eurozone remains our top pick. This is down to the political and economic situation. In Italy and France there are structural reforms in process that will trigger increased activity in the equity markets as opposed to Germany where reforms are rather unlikely.”
So far this year 75% of the memory express certificate range has featured single equity shares, with Daimler being the most favoured share by German issuers with the other 25% linked to single equity indices with the Eurostoxx50 taking the lion’s share.