US Wrap: HOLDRS strategy for Credit Suisse
If the first half of the week was all about SPDRS, Credit Suisse's new launches looks set to shift the attention to Holding Company Depositary Receipts (HOLDRS), a static basket of stocks in which the investor gets an interest. The Swiss bank has launched a six-month note linked to the oil service HOLDRS exchange-traded fund, which incorporates oil-related equities. Participation in the fund will be 300% throughout the six-month note, up to a cap of 18%.
ABN Amro looked to play the energy theme through a reverse convertible note, linked to the stock of Consol Energy. The six-month note will pay a rate of 9% annualised, with a conversion barrier of 70%.
Barclays, meanwhile, magnified the risk on a typical S&P 500 linked accelerated growth note by increasing downside participation to 111%. This allows for 200% upside participation in index gains, with no cap, and a protection buffer of 10%.
Source: Future Value Consultants & SEC filings
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