New Product for private Investors "Rio" interests Index-linked Bonds
| Svenska Handelsbanken will shortly be launching a new product for private investors - the `RIO` interest index-linked bond. It will be the first time that a product of this type is introduced in the Nordic countries. RIO is an interest rate investment with a difference. Linked to various bond markets via indexes, RIO can give a considerably higher return than traditional interest rate investments, when trends are favourable. Against the background of the turbulence on the global equity markets, we note that interest rate products are currently drawing increasing attention. RIO will have a link to two exotic bond markets which are otherwise closed to the majority of private investors, unless they have a very large amount of money to invest - Emerging Markets and US Corporate High Yield. Due to market turbulence in general, and the situation in Russia in particular, there has been a sharp fall in these indexes. Emerging Markets currently returns approximately 21 percent per annum! The equivalent return on High Yield is currently 10.3 percent per annum. Of course, these levels represent both risks and opportunities. As protection against sharp downturns, RIO has a capital guarantee. This guarantees investors at least the nominal amount of their investment in return on the redemption date. Furthermore, investors are not exposed to any foreign exchange risk, since both investments and repayments are made in Swedish kronor. The bond has a life of three years. The issuer is Svenska Handelsbanken. If you have any questions concerning this, please do not hesitate to |