Blue Sky structured product approaches capital breach level

Investors in Blue Sky's first structured product are nearing a breach of capital protection levels j...

Investors in Blue Sky's first structured product are nearing a breach of capital protection levels just seven months in the term. The product, launched in January, delivers returns based on a basket of UK bank shares, namely HSBC Holdings, RBS, Barclays, HBOS and Lloyds TSB. It works on the basis that if any stock falls by 65% overall capital protection is lost. If the basket then ends up down at the end of the six-year term, investor capital is eroded on a 1% for 1% basis. Since the 22 February strike date, HBOS is down roughly 56% and RBS 47%. Blue Sky MD Mark Dickson said there i...