Protean Investments, an independent structured product investment house, has rolled out a bond secured by U.K. gilts, the RPI Plus Note, What Investment reports. The bond, which has tenure of six years, is structured to protect investors from the risk of default normally linked with traditional corporate bonds.
The debt issue will be fully backed by U.K. government bonds and offer an estimated return of RPI plus 3 percent yearly. The government bonds being used as collateral would be substituted by G7-issued bonds in case the government defaults. Protean Investments, founded in 2011, provides structured and defined strategies to U.K. institutional, discretionary and advisory professionals.
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