You are working for a large US investment bank and are asked to provide a report for the Head of the Structured Products team. Analysing two HSBC products that were offered to clients a few years ago

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The first product is called HSBC Buffered Index Note and the second is called HSBC Buffered Accelerated Market Participation Security. The head of the team asked you to provide an analysis of these products, with the aim to understand whether similar products could be offered to you clients. The products described in the attached brochure are relatively long term, the your team would like you to consider a maturity of at most one year for these products.

The head of your team also asks you to provide ideas of how the HSBC Buffered Index Note

could be adjusted to provide a more attractive investment for clients and be more suitable to

the current market environment. Discuss at least one potential variation of this product that

could be offered to your clients and explain why you think it might be a successful product.