Barclays Capital is launching two new structured notes in response to investors’ needs for leveraged exposure to new markets with an element...

Barclays Capital is launching two new structured notes in response to investors’ needs for leveraged exposure to new markets with an element of capital protection. The notes, to be issued by Barclays Bank and are aimed primarily at UK-based fund and asset managers in the UK, will have daily liquidity in the secondary market. The sterling-denominated GSCI Agriculture Note is a five year product providing investors with exposure to 120 per cent of the rise in the GSCI agriculture excess return index with 100 per cent capital protection unless the index falls by 40 per cent from the initial starting level, and fails to recover to the initial starting level. If the index has fallen by 40 per cent, and remains lower at the product maturity than at the start of the product, the capital return will be reduced by the percentage amount that the index has fallen. The second sterling denominated note, the S&P 500 Note is also a five year sterling denominated note. It offers 125 per cent of the rise in the S&P 500 with 100 per cent capital protection unless the index falls by 50 per cent from its initial starting level, and fails to recover to the initial starting level.