US Wrap: Morgan Stanley and Goldman Sachs both straddle US equity
Two issuers launched straddle products into the US market at the close of last week, offering investors a non-directional play on the S&P 500 index. Goldman Sachs launched an 18-month product which pays 100% participation in the index in either direction, within a range of 24-28% on the upside and 72-76% of the index's initial level on the downside. If the index slips outside this range, then investors will receive back only their principal, which is 100% protected. Morgan Stanley's product lasts two years and pays 42-47% on the upside, with a downside barrier of 67.5% -72.5%. Participation and capital protection are both set at 100%.
Both issuers also launched near identical accelerated growth structures linked to the S&P 500. Each lasts two years, although Goldman product is more conservative, offering 150% participation in index rises with a downside buffer of 20%, whereas Morgan Stanley's product features 200% participation with 10% downside protection. However, the upside caps are relatively similar, with upper limits ultimately at around 48% for each.
Issuer
Product type
Underlying
Pricing date
Maturity date
Goldman Sachs
Str
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Most read
- Top 10 operational risks for 2024
- The American way: a stress-test substitute for Basel’s IRRBB?
- Filling gaps in market data with optimal transport