Mashreqbank launches Equity Gold investment

[54anickel]

How can they afford to guarantee a minimum rate of 15%? :shrug:


http://www.ameinfo.com/news/Detailed/35843.html

Mashreqbank has recently launched MashreqInvestments Equity Gold, a five-year, 100 per cent principal guaranteed, US dollar investment product which will pay out a minimum of 15 per cent on maturity or 50 per cent uncapped participation in the performance of a balanced basket of equity and gold.

The equity part of the investment is linked to the performance of the S&P 500 Index.

'Equity Gold targets the risk-averse investor as it guarantees a return of at least 15 per cent if held to maturity,' said Nabeel Waheed, Senior Vice President and Head of Treasury and Capital Markets, Mashreqbank. 'It also has an unlimited upside potential through 50 per cent participation in the performance of the underlying basket of equity and gold, with annual averaging.'

[FloridaPat]

1. If they don't get it by the S&P going up, there is always

bankrupcy, theft, or asking the Federal Government to pay for the bankruptcy.

[54anickel]

2. I was wondering if they aren't betting on interest rates like we had in

80's. I remember bank CD's at double digits. The height of Raygun-omics!