US Wrap: Five from five closes the US week
Issuance was scattered across five providers in the US on Friday, as structured products market flow remains piecemeal. Three of the products were accelerated growth structures, alongside two structures from opposite ends of the risk spectrum: a principal protected note and a reverse convertible.
The reverse convertible was issued by Citigroup Funding and linked to the stock of Nike. It lasts one year and pays an annualised coupon of between 10-13%. Capital is at risk if the stock breaches its 70% barrier.
The principal protected note offers a 100% capital guarantee, subject to the credit risk of issuer Bank of America. Investors' returns are capped at between 147-157% when the notes reach their five-year maturity, with 100% participation in the S&P 500 index. The notes will be sold by
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