US Wrap: Reverse convertible issuance predicts market rally

The S&P 500 underpinned a raft of new products including both autocallable and accelerated growth structures. HSBC issued a two-year product which kicks out after one year if the index is at 90% of its level at strike with an 18% return. However, capital loss is 1:1.11 for every percentage point slip below the 90% level by maturity. The product has two more autocall opportunities six months after the first observation date with higher payouts, although the index must be at 100% of its strike lev

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: