BOSTON--John Hancock Life Insurance Company (JHLICO) is now offering an inflation-adjusted retail note, an addition to its SignatureNotes program. The inflation-adjusted SignatureNotes will be a medium-term note offering, but have a two-part coupon. The first part is based on the year-over-year change in the Consumer Price Index (CPI). The second part is a fixed amount, set at the time of the offering, which is added to the year-over-year percentage change in the CPI.
As the CPI changes, the applicable coupon rate will increase or decrease; however, even in a period of severe deflation the coupon rate will never fall below zero.
"Our inflation-adjusted SignatureNotes offering provides investors with a means to help mitigate the impact of inflation on their investment portfolios," said Jeanne Livermore, senior vice president, Guaranteed and Structured Financial Products.
Ian Roke, general director, Guaranteed and Structured Financial Products, noted: "While most investors realize that inflation has remained at or even below historical norms for quite some time now, and may expect inflation to begin to rise as the economy continues to strengthen, it's possible that it may stay level or even sink. The coupon rate applicable to these notes may rise or fall from month to month, depending upon movements in the CPI."
Hancock launched its medium-term-note program in August 2002 and has sold more than $1.7 billion in bonds since that time. More than 250 broker-dealers to date have offered SignatureNotes to clients.
The notes will be ranked equally with all of Hancock's other senior, unsecured, unsubordinated debt. SignatureNotes typically are available each week in a variety of structures. The bonds have a minimum $1,000 investment and are available in increments of $1,000. Customers are able to choose among bonds with interest payments that are made monthly, quarterly, semi-annually or annually.
