UBS has filed another seven reverse convertibles with the US Securities and Exchange Commission, one of which is linked to resort company Las Vegas Sands. The remainder of that day's listings in the US came from Royal Bank of Canada, Goldman Sachs, Bank of America Merrill Lynch, Barclays Bank, Deutsche Bank and HSBC
UBS ended last week on a reverse convertibles theme in the US, with the launch of a further seven products on February 24. Eleven other structured products were registered in the US on that date, including leveraged return, bonus and autocallable products from Royal Bank of Canada (RBC), Goldman Sachs, Bank of America Merrill Lynch (Baml), Barclays Bank, Deutsche Bank and HSBC.
The reverse convertibles from UBS include a 10-month product based on luxury resort company Las Vegas Sands, which pays an annualised rate of 10.02% and puts capital at risk if the final-level barrier of 78% is breached. Deutsche Bank filed four reverse convertibles linked to US stocks.
UBS also filed two autocallables with 1.01-year terms that offer fixed, early returns if certain conditions are met on any observation date. One is linked to Kinross Gold and the other to Weatherford International. Principal is at risk if the final-level barrier – of 80% and 70%, respectively – is breached.
Royal Bank of Canada, Goldman Sachs and Baml offered leveraged return products tied to the MSCI EAFE, S&P 500 and S&P MidCap 400 indexes, respectively. The products from RBC and Goldman have a maturity of 2.25 years and offer the potential for accelerated returns of four times the rise in the index, with principal at risk if the index finishes below its initial level. Baml's leveraged return note is a 1.17-year investment that offers potential accelerated returns of three times the growth in the index subject to a maximum return of 115–119%.
The HSBC bonus structure is a 1.03-year product linked to the S&P 500 that offers a minimum return of 5% provided the closing-day barrier of 80% is not breached, with potential additional returns equal to the growth in the index if it finishes above 105% of its initial level. Returns are capped at 120%.
More on Structured Products
Risk comparisons must be made easier under Priips KID, says AMF
JAC calls on regulators to co-ordinate cost disclosure rules in KID with Mifid II
Capital-at-risk product comes with an unusually long 10-year maturity
Issuer’s capital-at-risk product with quarterly coupons reviewed
Sign up for Risk.net email alerts
Regulation and low interest rates pose greatest challenge
Winners from the Structured Products Europe 2013 talk about the challenges of regulation and the increasing appetite for hybrid products
Structured Products spoke to Dimitris Melas, Global Head of New Product Research at MSCI about a new innovation in indexing – factor investing.
Structured Products spoke to Gareth Parker, senior director of index research, design & development of Russell Indexes at Russell Investments’ as it launches the Russell UK Mid 150 Index.
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.