US Wrap: Metals used for reverse convertibles

There is another swathe of reverse convertibles in the latest issuance. This time the majority come from Royal Bank of Scotland, and metals – both precious and industrial – are the underlying of choice.

Both RBS and UBS have reverse convertibles based on Freeport-McMoRan Copper & Gold. RBS's notes are four-month investments offering 11.5% annual returns with an 80% barrier against any decline in the value of stocks, after which capital will be lost on a 1:1 basis. The UBS notes are six-month