US Wrap: Accelerated growth products take lead in the US market

There is a trend emerging in the US market for accelerated growth products, taking over from the previous demand for reverse convertibles. HSBC has dominated the latest issuance with its swathe of accelerated growth products. The Accelerated Market Participation Securities linked to the Russell 2000 Index are one-year investments offering 300% participation in the index, with a cap of 21–26%. This is considered a risky investment and the high participation rate comes at the cost of prin