US Wrap: Barclays makes energetic leap into reverse convertibles

Barclays launched 27 reverse convertibles into the US market at the close of last week, making it one of the busiest days in the market so far in 2009. The notes range in duration from three months to a year and cover several sectors, including retail and financials, catering to a wide spectrum of views on when an equity market recovery might be likely to take place.

One of the most prevalent themes was energy, with 11 products offering exposure to different companies associated with the sector, including offshore drilling. Appetite for oil exposure is clearly still strong among investors interested in commodity equity. However, links to copper and gold producers were also on offer, as was a note structured on John Deere stock, which manufactures agricultural and farming equipment.

The breadth of stocks and sectors covered is growing more expansive, which