Divergence in return profiles hints at returning US risk appetite

Digitals and leveraged return notes linked to the S&P 500 are among the latest products to be filed with the SEC, while UBS has offered a reverse convertible linked to MGM Resorts

Risk appetite

Differences in the return profiles of structured products based on the S&P 500 Index registered with the Securities and Exchange Commission on April 16 indicate that appetite for risk is making a comeback in the US.

JP Morgan and Barclays Bank each offered a digital product and Goldman Sachs filed two leveraged returns. The JP Morgan digital gives investors a modest return of 7–9% if the trigger level of 80% is reached, but the Barclays product pays 12% for those willing to take a risk on a 100%

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