US Wrap: Accelerated growth products dominate, and choose tech
The range of new accelerated growth products launched yesterday included exposure to emerging markets, international equity and technology stocks alongside the usual US equity plays. Bank of America (BoA) launched a growth structure linked to the performance of the Technology Spdr fund, which selects tech-related stocks from the S&P 500. The deal lasts a year and a quarter and offers 300% participation in the fund up to a cap of between 18-22%, with the exact level to be set at the pricing date. Investors will not have any downside protection.
Overall, product scope broadened considerably. BofA also launched a kickout product linked to the iShares MSCI Brazil Index Fund which promises to pay a coupon of 15-19% after one year, while including 10% downside protection.
Principal protected products are also beginning to make more regular appearances as volatility eases off, making options slightly cheaper and giving room to add guarantees. BoA and JP Morgan launched principal protected notes linked to the S&P 500 index, both 100% capital
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