Morgan Stanley offers gilt-backed structured product

clock

Morgan Stanley has launched the FTSE Gilt-Backed Growth Plan 7, a collateralised structured product designed to mitigate credit risk and protect capital.

The latest issue of the six-year growth plan is backed by UK government bonds to secure the capital protection element of the product. Exposure to the credit risk of Morgan Stanley, who provides the derivative giving the return, is also mitigated as the bank posts cash into a segregated account on a daily basis. Any cash posted into this account are purely used to provide returns for the plan and cannot be used for any other purpose. Morgan Stanley executive director Marc Chamberlain says: "In 2009, when the entire banking sector was under immense pressure, discretionary managers, IFA...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Structured Products

Exploring the options for downside protection in a bear market

Exploring the options for downside protection in a bear market

Making the case for diversification through structured products

David Wood
clock 04 January 2023 • 5 min read

Structured product returns fall in 2020 despite continued success

Almost three-quarters generated positive returns

David Brenchley
clock 26 January 2021 • 2 min read

Structured product performance analysis tool launched for advisers

Free for advisers

clock 02 March 2020 • 2 min read