US Wrap: Return to the reverse convertible staple

After seeing a more varied product mix recently, the latest offering for the US market has turned back to the ever-popular reverse convertible. There is a broad range of underlyings, but aluminium manufacturer Alcoa is the most frequently used.

Royal Bank of Scotland's Reverse Exchangeable Securities linked to Alcoa are six-month investments. They pay 11.5% annual coupon, paid monthly with a barrier of 75%, after which capital will be lost at the rate of 1:1.

RBS and Barclays have both decided

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