US Wrap: Reverse convertible market drills down to oil stocks
Reverse convertibles dominated yesterday's issuance in the US market, representing 10 of the 13 new structures issued. Two of the new notes offer exposure to oil - one through offshore drilling company Transocean, and the other through Interoil. The latter was issued by ABN Amro and pays an annualised coupon of 25% over one quarter, with a conversion barrier of 65%.
Barclays was largely leading the pack as usual, issuing eight reverse convertibles. Around half of its products were longer term trades of a year, and included three energy stocks.
Issuer
Product type
Underlying
Pricing date
Maturity date
ABN Amro
Reverse Convertible
InterOil
Jul 16 2009
Oct 21 2009
Goldman Sachs
Accelerated Growth
S&P 500
Jul 2009
Feb 2012
Goldman Sachs
Accelerated Growth
MSCI Eafe Index
Jul 2009
Jan 2011
Barclays Bank
Rever
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