CREDIT AGRICOLE 4 YEAR S&P 500 / EU BANKS FIXED INCOME
STRUCTURED INVESTMENT NOTE
Earn a Guaranteed
7.01% IN USD
OR 7.34% in GBP PER ANNUM
This product is available until 31st August 2023
Regular income Generation
Inflation Protection
Downside Protection
How This Note Works?
Key Points
The STOXX EUROPE 600 Banks Index
The S&P 500 Index
Historical Performance
ISINs
USD: XS2517119413
GBP: XS2517119504
This is a structured investment with defined risk and returns. It has some interesting features as outlined below:
It is a 4 year investment linked to the performance of the STOXX Europe 600 Banks Index (SX7P) and S&P 500 Index (SPX)
Term of Investment
This investment has a term of 4 years.
Strike Date Value
This product strikes on the 31st August 2023. On that date, the index value of the STOXX Europe 600 Banks and the S&P 500 Index will be recorded.
Fixed Income Coupons
A quarterly coupon of 1.7525% in USD or 1.8350% in GBP is paid regardless of the performance of the underlying indices.
Risk
If, at the end of the 4 year term the index is trading below 70% of its strike date value then capital is at risk. Investors will receive 1:1 return of the index, plus the final coupon for that period. For example, if the index drops by 40% of its strike date value, 60% of initial capital will be returned, plus the final coupon payment for that period.
Final Maturity
If, at the end of the 4 year term, the index is on or above 70% of its strike date value, investors will receive their initial capital back in full, plus the final coupon payment for that period.
THE STOXX EUROPE 600 BANKS INDEX
Index Profile
The STOXX Europe 600 Banks Index Banks Index represents a diverse portfolio of leading European banking stocks, providing investors with exposure to the financial sector across the Eurozone. The STOXX Europe 600 Banks Index presents an attractive opportunity for investors seeking long-term capital appreciation and
income generation.
Despite recent challenges and uncertainties, the banking sector is poised for recovery, driven by improving economic conditions, favourable regulatory changes, and digital transformation efforts. Investing in the STOXX Europe 600 Banks Index offers diversification, potential for strong returns, and a compelling valuation.
Economic Recovery and Favourable Regulatory changes:
The Eurozone economy is expected to rebound strongly in the coming years, driven by various factors such as fiscal stimulus measures and accommodative monetary policy.
As economic activity picks up, banks stand to benefit from increased loan demand, higher interest rates, and improved asset quality. Additionally, regulatory changes aimed at strengthening the banking sector, enhancing stability, and reducing risk will provide a favourable operating environment for Eurozone banks, supporting long-term growth prospects.
Digital Transformation and Cost Efficiency:
European banks have embarked on significant digital transformation initiatives to enhance operational efficiency, reduce costs, and improve customer experience. Investments in technology, automation, and digital platforms allow banks to streamline processes, expand their reach, and offer innovative products and services. As these efforts gain traction, STOXX Europe 600 Banks Index constituents are well-positioned to capitalize on the digital revolution, leading to increased profitability and competitiveness.
Diversification and Exposure to Leading Institutions:
Investing in the STOXX Europe 600 Banks Index provides diversification benefits by gaining exposure to a basket of leading banking institutions across the Eurozone. The index includes major players such as BNP Paribas, Deutsche Bank, Banco Santander, and other well-established financial institutions. This diversified exposure mitigates company-specific risks and allows investors to participate in the overall performance of the banking sector, benefiting from the potential growth and stability of the Eurozone economy.
THE S&P 500
The S&P 500 is recognised worldwide as one of the premier benchmarks for the U.S. stock market’s performance. The S&P 500 does not simply contain the 500 largest stocks; rather, it covers leading companies from leading industries. The S&P 500 represents a broad cross-section of the U.S. equity market, including common stocks traded on U.S. exchanges. No investments are immune to short-term volatility, but the S&P 500 has historically been one of the fastest markets to recover from downturns.
Historically, the index has recovered from every crash, bear market, and recession it’s ever faced.
A Highly Resilient Market
No investments are immune to short-term volatility, but the S&P 500 has historically been one of the fastest markets to recover from downturns.
Historically, the index has recovered from every crash, bear market, and recession it’s ever faced.
Efficient Investing Strategy
One of the biggest advantages of tracking the S&P 500 via a structured product is that it’s an extremely low-maintenance style of investing. The S&P 500 tracks 500 of the largest blue-chip companies in the US, the components are reviewed regularly to ensure it provides an accurate representation of the US blue chip market. This ensures investors can maintain exposure to leading companies and enjoy a consistent annual return of 7.01% in USD or 7.34% in GBP over a 4-year term without having to manually rebalance their portfolio.
The Underlyings
