US wrap: JP Morgan accelerated growth product links to single company

JP Morgan products tracks technology company 3M

The past few issuances have seen US volumes return to normal, perhaps because many issuers are back at work after their August holidays. Almost all the index-linked products in this offering track funds, continuing the recent trend towards fund-based products.

One exception is an 18-month accelerated growth product from JP Morgan that links to a single company, which is extremely rare in the US market at the moment.

The product tracks 3M, a global technology company, and offers a 300% participation rate capped at 19.3%. The 30% downside buffer is double that usually offered in accelerated growth structures and secures the product an overall score of 8.7 and a riskmap of 2.1.

The SPDR S&P 500 ETF (exchange-traded fund) is used for two Barclays accelerated growth products. The first is an 18-month product offering participation of 150% of any growth in the underlying, capped at 10.5–15.25% with a 10% downside buffer.

The second accelerated growth product from Barclays has an 18-month term and offers the same participation and downside buffer with a cap of 14–19% on returns. The products have similar scores of 7.3 and 7.8 overall, respectively, and both have a riskmap score of 3.1.

Barclays is back on form for this issuance, not only has it issued several accelerated growth products but it has also stepped upped its reverse convertible issuance after a quiet few months.

Some of the reverse convertibles are linked to technology companies, which could be an emerging theme seeing as JP Morgan chose a technology company for its accelerated growth product.

Details of the latest issuance are available here