US Wrap: Reverse convertibles come bouncing back

Sixteen new issues were launched into the US market yesterday, doubling Monday's issuance. Barclays Bank offering 8 convertible notes on a smattering of underlyings including the US Oil Fund, Goldman Sachs stock, the equity of electronics retail chain Best Buy and farming equipment manufacturer John Deere. Two of yesterday's convertibles were issued by Eksportfinans.

Two other reverse convertible notes were issued into the space by as many providers, both using their own credit: Morgan Stanley and Citigroup. Morgan Stanley also linked its note to the US Oil Fund - with a 60% barrier and a six-month life, the annualised coupon is 20.1%. This is against Barclay's 14.75% with the same terms and underlying.

Issuer

Product type

Underlying

Pricing date

Maturity date

Barclays Bank

Reverse Convertible

John Deere

Feb 10 2009

Aug 13 2009

Ba