US Wrap: JP Morgan turns to Europe for growth
JP Morgan has launched an accelerated growth product based on European exposure, as reverse convertible issuance eases off again. The structure, which links to the DJ Eurostoxx 50, is the first of its kind from any issuer this year, as the index typically appears in a basket with other regional exposures.
The Return Enhanced Note lasts three months and offers 300% participation in the Eurostoxx. There is no downside protection and returns are capped at 21%, which means that 7% index growth would push investors to this return cap.
Barclays issued a lone reverse convertible, a quiet finish to a flurry of issuance that saw the bank issue 30 of the notes in two days this week. Citi also launched a reverse convertible, linked to the stock of a multinational biopharmaceutical company.
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