US Wrap: Reverse convertibles vanish from end of week offering
The dominance of reverse convertible structures this week came to an end yesterday, when only a single growth and one kick out structure were issued. Royal Bank of Canada launched the latter, offering investors exposure to the S&P 500 index over 18 months. If the index is at or above its starting level after 18 months, the structure pays a coupon of 14.25%. A 10% downside buffer is incorporated, after which downside participation will be 1:1.
Credit Suisse issued a growth structure which gives 200% participation in upside movements of the Russell 2000 index. The note lasts one year and gives 20% downside protection, while upside returns are capped at 18%.
Issuer
Product type
Underlying
Pricing date
Maturity date
Royal Bank of Canada
Review
S&P 500
Jun 25 2009
Dec 30 2010
Credit Suisse
Accelerated Growth
Russell 2000
Jun 17 2009
Jul 26 2010
Source
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