Product performance

Eve Berlinksa analyses the fortunes of three product types in the US market over the past six months – a reverse convertible linked to Morgan Stanley, an accelerated growth note linked to Sohu.com and a principal-protected note on Limited Brands

Reviewed this month are a six-month reverse convertible linked to the common stock of Morgan Stanley, an accelerated growth product linked to the common stock of Sohu.com and a six-year principal-protected note linked to the performance of Limited Brands.

Reverse convertibles are a perennially popular structure in the US market. Once such a product has struck, the best outcome for investors is one in which no barrier breach occurs. If the volatility of the underlying stock falls after the