US Wrap: S&P 500 exposure for the cautious and the confident
Two different plays were offered by Morgan Stanley on the S&P 500 yesterday, catering for conservative and more aggressive outlooks. One is a five-year principal protected note which offers 100% participation in the index and a capped return of 67-77%. Capital is 100% protected at maturity. The second note is an accelerated growth structure which has a life of two years. By contrast, it offers only a 10% downside buffer, while the participation rate in gains is set at 200%, with a cap of 46-50% on returns. Barclays added another product to its rapidly growing stock of reverse convertibles, linking to the performance of the US Oil exchange-traded fund.
Issuer
Product type
Underlying
Pricing date
Maturity date
Morgan Stanley
Principal Protected
S&P 500
Mar-09
Mar 20 2014
Morgan Stanley
Accelerated Growth
S&P 500
Mar-09
Mar 20 2011
Barclays Bank
Reverse Convertible
US Oil
Feb 20 2009
Aug 25 2009
Source: Future Value Consultants & SEC filings
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