Reverse convertibles are highly sensitive to volatility, which is one of the reasons that the coupons promised can be so high, but it is also why capital is very much at risk. FVC compares the virt...
Recent US structured products issuances have contained several products with multiple underlyings and the latest follows suit with basket products from HSBC, Barclays and Morgan Stanley.
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Reverse convertibles are the product of choice in the latest issuance, Bank of Montreal has the lion's share.
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Crunch time for convertibles
In response to industry fears of a collateral crunch, regulators have revised the proposed rules on margining for uncleared over-the-counter (OTC) derivatives.You can find out more by downloading this white paper here.