At the end of the four-year maturity, investors will receive 150% of the rise of the spot prices of the underlying commodities. An institutional offering is also available, offering 200% of the rise in the basket.
The launch comes only two months after the first tranche of the product, entitled the Protected Commodities Accelerator II, opened.
Mark Mathias, chief executive of DDQ, said the second issue follows on from the success of the first. He believes commodity markets are set for a “long and sustained bull market", a belief also espoused by many investment bank research departments. He also noted that commodities are one of the rare asset classes that have a negative correlation to equity and bond markets.
The week on Risk.net, March 10-16 2018Receive this by email