US Wrap: Multiple issuers pile into S&P 500 exposure

Thirteen products have been offered by eight different issuers in the US structured products market over the past two days. Out of this offering, 10 have been linked to the S&P 500 index, including a range-bound structure from Morgan Stanley. The 100% principal protected product does not require investors to take a directional view, offering participation in the index whether it moves up or down, provided the S&P 500 stays within a range of 67.5-72.5% to 146-151% of its value at inception (the exact levels will be set at strike.) If it breaks its barrier at any time during the product's two-year life, then investors will receive back principal only.

Merrill Lynch also launched a product linked to the MSCI Eafe international equity index, using the external credit of Eksportfinans, and Royal Bank of Canada continued its reverse convertible run with a note linked to tobacco giant Philip Morris International.

Issuer

Product type

Underlying

Pricing date

Maturity date

Morgan Stanley

Accelerated Growth

S&P 500

Apr-09

Apr 20 2011

Morgan Stanley

Straddle

S&P 500

Apr-09

Apr 20 2011

Morgan Stanley

Principal Protected

S&P 500

Apr-09

Apr 21 2014

EKSPORTFINANS ASA

Accelerate