Barclays Capital, the investment banking division of Barclays Bank, has launched Barclays Retirement Income Notes, a suite of products which seek to provide a transparent and flexible alternative for generating retirement income. Level-Pay Notes and Inflation-Indexed Level-Pay Notes are the first two products in the suite.
Barclays Retirement Income Notes are securities which may be bought, sold or transferred and each security is constructed to pay a minimum monthly nominal or inflation-adjusted cash amount, which includes a monthly return of principal spread over time.
Barclays intends to issue these notes in a regular monthly program, beginning with a first set of notes issuing on September 1, 2010.
Leo Clark, director of rates structuring Americas at Barclays Capital, said: “As ‘baby boomers’ reach retirement and pension schemes shift from defined benefit to defined contribution plans, there is a greater need for financial products that may allow investors to manage their cash flows while meeting their financial goals and maintaining their standard of living. Barclays Retirement Income Notes are innovative solutions that are intended to help investors mitigate risk and generate income.”
Richard Couzens, director of investor solutions at Barclays Capital, said: “This timely new product suite permits monthly cash flow planning while mitigating downside risk, offers simplicity and allows the investor to retain control.”