US Wrap: Return to reverse convertibles at week open
The US market has sprung back to life after dwindling to a near standstill towards the end of last week, with 22 new reverse convertible structures launching into the market.
Barclays led the pack as usual, issuing over half of new products, with UBS and Wells Fargo making up the rest. The latter opted to use the external credit of Eksportfinans, now that its own triple A rating has been downgraded.
Peabody Energy as a reference stock was doubled up, with UBS offering an 18.5% annualised coupon on the stock over six months at a conversion barrier level of 70% versus the Eksportfinans-backed note, which offers a 16-17% coupon on the same terms.
One of the riskier
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