US wrap: reverse convertibles prove to be low-risk investments

Royal Bank of Canada issue low risk reverse convertibles

It is another quiet day on the issuance front. In an offering consisting of just reverse convertibles, all of the products have a low riskmap score, although they are viewed by some as risky investments due to their conversion feature. The three-month reverse convertible notes linked to Garmin, issued by Royal Bank of Canada (RBC), have a riskmap score of just 2.5. The product and the underlying have a low level of volatility, meaning that it is less likely that the stocks will fall in value