US Wrap: Issuers get bullish on S&P 500 recovery

Six products were launched into the US market yesterday, accelerating a subdued week. Morgan Stanley added to its previous launches with two reverse convertibles, while Credit Suisse and Goldman Sachs both launched accelerated growth products. Four of the six products include leveraged, non-principal-protected exposure to the S&P 500, showing the surprisingly bullish attitude to US equity recovery continuing.

Credit Suisse's latest in its Bares (Buffered Accelerated Return Equity Securities) range offered a 600% participation rate in index gains, with 111% downside participation. Returns are capped at somewhere between 22-25% and the investment lasts just over one year. The remaining three products offer leveraged participation rates of either 300% or 500%.

Morgan Stanley's reverse convertibles are linked to a SPDR Trust, a type of listed fund, and the stock of Kroger, a US retail food chain.

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