They are back – the accumulators. A financial product dubbed ‘I kill you later’.
Accumulators oblige investors to buy shares at a fixed price — usually a discount to prevailing market rates — at regular intervals. If the stock’s market price continues to gain, investors can pocket a hefty return; usually, the contracts include a kick-out feature that causes the contract to expire if shares rise above a certain level.
This product caused a lot of pain, especially in Asia. But we learn that UBS, HSBC, Citi and other are offering them again to wealthy investors.
Don’t touch it
Accumulators oblige investors to buy shares at a fixed price — usually a discount to prevailing market rates — at regular intervals. If the stock’s market price continues to gain, investors can pocket a hefty return; usually, the contracts include a kick-out feature that causes the contract to expire if shares rise above a certain level.
This product caused a lot of pain, especially in Asia. But we learn that UBS, HSBC, Citi and other are offering them again to wealthy investors.
Don’t touch it
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