Conversation Guide Structured Products  ·  Product Guide & Comparison
Structured Investment · Reference

Structured products, compared.

A reference guide to the four core structures — Bullet EKI, Step Down EKI, Range Accrual, Inverse Floater — with key terms, mechanics, and a side-by-side comparison.

Product01Bullet EKI

Auto-callable equity-linked, lump-sum coupon.

Returns linked to the performance of underlying shares (single stock or basket). Product auto-redeems early if stock hits KO barrier. "Bullet" means the coupon accumulates and pays as a lump sum upon KO event or at maturity — NOT paid periodically.

TermValue
Strike100% of Reference Price
KO barrierFixed at 102% — does not step down
KI barrier% below strike (e.g. 70–80%) — triggers principal loss
KO methodMemory (each stock checked independently)
CouponBullet — all accumulated coupon at KO or maturity
SettlementPhysical if KI triggered
QuantoYes — MYR, no FX risk on stocks

Best case

KO triggered early.Stock rises above KO. Get back: investment + ALL accumulated coupon. Higher annualised return.

Middle case

No KO, no KI.Stock stays between KI and KO. At maturity: investment + full coupon. Waited longer, same coupon.

Worst case

KI triggered.Stock drops below KI. Receive worst-performing stock (physical shares) instead of cash. Potential loss.

RM tip

Higher headline rate.Because no interim coupons. present to clients bullish on the stock who want max coupon. "If you believe TSLA stays above 70%, you earn the full coupon in one shot."
Product02Step Down EKI

Auto-callable with a decreasing KO barrier.

Same auto-callable mechanic as Bullet EKI but the KO barrier decreases each observation period — making it progressively easier to knock out and exit with your money plus coupon. Typical step-down: 3% per month.

TermValue
Strike80% of Reference Price (lower strike = more buffer)
KO barrierSteps down each observation (105% → 102% → 99%…)
Step-down rate3–5% per month/quarter
KI barrier% below strike (e.g. 70%)
KO methodMemory
CouponMonthly (rate ÷ 12)
SettlementPhysical
QuantoYes — MYR

Step-down example: 3%/month from 105%.

MonthKO barrierWhat it means
1105%Stock must be above 105% to KO
2102%Easier — only needs 102%
399%Below starting price works
496%Stock can drop 4% and still KO
981%Stock can drop 19% and still KO
Product03Range Accrual

ESG-structured, principal-protected rate accrual.

Interest accrues daily based on whether 3-Month KLIBOR stays within a pre-set range (e.g. 0%–3.80%). Every day in range = coupon. Every day outside = 0%. Principal is protected at maturity or call.

TermValue
Underlying3-Month KLIBOR
Tenor6 years, quarterly payout
Range0.00%–3.80%
Max coupon5.00% p.a.
Min coupon0.00% p.a.
CallableYes — any coupon payment date
Current KLIBOR3.49% — within range
PrincipalProtected at maturity or call

Interest calculation logic.

KLIBOR vs rangeYou receive
In range every dayMaximum 5.00% p.a.
Outside every dayMinimum 0.00% p.a.
MixedProportional (participating rate)
Product04Inverse Floater

ESG callable inverse floater — profits from rate cuts.

Year 1 pays a fixed high coupon. From Year 2: coupon = multiplier × (Strike − KLIBOR). The lower KLIBOR, the higher your coupon. If BNM cuts rates, your coupon increases. Floor 0%, cap 10%.

TermValue
Underlying3-Month KLIBOR
Tenor5 years, quarterly payout
Year 1Fixed 6.90% p.a.
Year 2–5 formula5.40 × (4.00% − KLIBOR)
Floor0.00% p.a.
Cap10.00% p.a.
CallableYes — from first coupon date
PrincipalProtected at maturity or call

Coupon by KLIBOR (Years 2–5).

KLIBORFormulaAnnual
2.50%5.40 × (4.00% − 2.50%)8.10%
3.00%5.40 × (4.00% − 3.00%)5.40%
3.49% (current)5.40 × (4.00% − 3.49%)3.73%
3.50%5.40 × (4.00% − 3.50%)2.70%
4.00%+Floor0.00%
Product05Comparison

Side-by-side reference.

Bullet EKIStep Down EKIRange AccrualInverse Floater
UnderlyingSharesSharesKLIBORKLIBOR
PrincipalNot protectedNot protectedProtectedProtected
Tenor9–12 months9–12 months5–6 years5 years
Typical coupon13.40% p.a.13.60% p.a.4.5–5% p.a.3–7% p.a.
Coupon typeLump sumMonthlyQuarterlyQuarterly
Key riskStock crashStock crashKLIBOR spikeKLIBOR rise
MinimumRM 50KRM 50KRM 50KRM 50K

Which product for which client.

Conservative / FD-type

Range Accrual."Principal-protected smart FD at 5%." Low risk tolerance.

Rate-cut believer

Inverse Floater."6.9% Year 1 locked in, more if rates drop." Low–medium risk tolerance.

Equity bull (cautious)

Step Down EKI."10%+ coupon, KO comes down to you." Medium–high risk tolerance.

Equity bull (aggressive)

Bullet EKI."16%+ lump sum coupon, highest return." High risk tolerance.

For general information and educational purposes only. Not investment advice. Not principal protected (EKI products). Past performance not indicative of future results.

Conversation GuideStructured Products · Guide & Comparison
Structured Investment · Reference

Structured products, compared.

Four core structures — Bullet EKI, Step Down EKI, Range Accrual, Inverse Floater.

01.Bullet EKI

  • Auto-callable, lump-sum coupon. Pays at KO or maturity, not periodic.
  • KO 102% (fixed). KI 70–80% at maturity only. Memory KO.
  • Settlement physical if KI. Quanto MYR.
  • Pitch: Bullish on stock, wants max coupon at one shot.

02.Step Down EKI

  • KO barrier drops 3%/month. 105% → 81% over 9 months — easier exit over time.
  • Strike 80% — lower strike, more buffer. KI 70%. Memory KO.
  • Monthly coupon 13–14% p.a.
  • Pitch: Cautious equity bull who wants income visibility.

03.Range Accrual

  • KLIBOR-linked accrual. Earn coupon for every day KLIBOR is within 0%–3.80%.
  • Principal protected at maturity or call.
  • Max 5.00% p.a., floor 0%. Quarterly payout. 6-year tenor.
  • Pitch: "Principal-protected smart FD at 5%." Conservative clients.

04.Inverse Floater

  • Year 1 fixed 6.90%. Years 2–5: 5.40 × (4% − KLIBOR). Floor 0, cap 10%.
  • BNM cuts → coupon rises. Inverse of conventional floater.
  • Principal protected at maturity or call. Quarterly payout. 5-year tenor.
  • Pitch: "6.9% Year 1 locked in, more if rates drop." Rate-cut believer.
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05.Side-by-side comparison

BulletStep DownRange AccrualInverse Floater
UnderlyingSharesSharesKLIBORKLIBOR
PrincipalNot protectedNot protectedProtectedProtected
Tenor9–12mo9–12mo5–6yr5yr
Coupon13.4%13.6%≤5.0%3–7%
TypeLump sumMonthlyQuarterlyQuarterly
Key riskStock crashStock crashKLIBOR spikeKLIBOR rise

06.Which product for which client

  • Conservative / FD-type → Range Accrual. "Principal-protected smart FD at 5%."
  • Rate-cut believer → Inverse Floater. "6.9% Year 1 locked, more if rates drop."
  • Cautious equity bull → Step Down EKI. "10%+ coupon, KO comes down to you."
  • Aggressive equity bull → Bullet EKI. "16%+ lump sum coupon."
For general information and educational purposes only. Not investment advice. Not principal protected (EKI products). Past performance not indicative of future results.
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