US Wrap: Growth products lead the pack
Nine deals were filed and launched in the US structured products market yesterday, with half the issuance made up by accelerated growth products. JP Morgan fed the confounding appetite for US equity exposure with a 300% leveraged participation rate in the S&P 500 in a one-year, principal-at-risk product with 33% capped return.
Barclays Bank and Eksportfinans were the only two issuers in the beleaguered reverse convertible space. Barclays is offering a six-month product linked to the equity of US homeware retail chain Bed Bath and Beyond, with an 11% annualised coupon paid monthly, and a 65% barrier before investors are repaid in shares. Eksporfinans's product also has a six-month maturity and will be sold by Wachovia Capital, with 70% downside protection linked to the performance of a SPDR trust.
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