Market snapshot
Reverse convertibles have returned to the top of the notional issuance list in the US, after losing out for the previous three months to capital-at-risk accelerated growth products. Tim Mortimer details the month’s US and UK issuance market
The most frequently released structure in the US remains the reverse convertible, which took over from capital-at-risk accelerated growth products. Reverse convertible issuance commanded a 31.13% share of April's notional, from 79 new products, with the majority based on the monthly payment of a fixed income. The maximum that can be received investing in reverse convertible notes is the income stream (generally above the risk-free rate) plus full capital. If the volatility levels are high, the
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