Structured Products/Review
GE and Target in reverse
An annualised income of 16.2% and 16.8% is on offer from JP Morgan-issued reverse convertibles linked to General Electric and Target Corp shares, respectively. Principal is not protected if a 50% barrier is breached
Offering income and growth
Product Review
CD wrapping
JP Morgan is offering a three-year growth product linked to the S&P 500 index with principal protection in a CD wrapper. Participation goes up to a 145% knock-out level
Playing house
Arc Capital and Income is offering a six-year capital-protected product linked to the UK Halifax House Price Index. It offers 100% participation in any performance above 70% of the initial index level
Stabilisers for all
BNP Paribas has launched the Privalto Stabiliser, a six-year simple growth product linked to equity, commodity, currency and property. Capital protection is included as part of the package unless the early exit feature is exercised
Linking to UK banking stocks
Cater Allen Private Bank is offering a capital-protected kickout product linked to a portfolio of four UK banking stocks. The potential return is 11%, although final averaging can constrain growth in a rising market
Hot and gold
Two gold-linked products are on offer, one by Quantum Asset Management in the UK, and another by Morgan Stanley in the US. Both are attractive propositions, though the US product has more obvious advantages
The transparency tide
The issue of counterparty risk and how best to convey it to retail investors dominated the agenda at the Structured Products Europe conference. Delegates explored ways of identifying and mitigating risk, while the rise in structured funds and regulation…
Compliant commodities
Product reviews
Mittel European Reflections
Central and eastern Europe is a huge potential market for structured products and exchange-traded funds. Structured Products' first conference in the region explored commodities, foreign exchange and diverse underlyings, but the most pressing issue was…
Greater China plus Singapore
JP Morgan is offering Asia confidence notes in Singapore and US dollars in the form of a two-and-a-half year product that links into four equity indexes, in China, Hong Kong, Singapore and Taiwan
A copy of carbon
Sterling Waterford is providing a four-year carbon credit note in South Africa for which capital is protected at maturity, although illiquid assets may make the product hard to value at the end of the term
A focus on funds
The Italian structured products market is shrinking in the global financial crisis, while exchange-traded funds race ahead. Traditional methods of guaranteeing structured products were brought into question at the Structured Products Milan conference,…
Income and inflation cover
Investec is offering a five-year income product linked to the FTSE 100 with coupons linked to inflation. Capital is not protected at maturity if the 50% barrier is breached at any time during the life of the product
Follow the bear
Merrill Lynch has launched an 18-month bear market review note linked to the Dow Jones US Real Estate Index offering a premium of 14.8% and a potential early return as well as a known underlying
Weathering the storm
Lehman Brothers' collapse has potentially ruinous consequences for the US structured products market. But delegates and speakers at the Structured Products West Coast Conference were surprisingly upbeat about the future and opportunities that have arisen…
Building in safety
The structured products market in Asia is almost unrecognisable from where it was 12 months ago. Products such as accumulators and range accrual notes have been consigned to history, while product manufacturers and distributors alike look for new ways…
Changing landscape
The Irish structured product landscape is changing as volatile financial markets push investors to seek alternative assets, capital protection and shorter-term products. In a week of financial turmoil and failing banks, issuers' credit ratings were a…
Newcastle offers clean energy
Newcastle Intermediary Services has launched a five-year capital-growth product based on 20 alternative energy companies. The principal investment is protected at maturity, and returns are subject to income tax
Looking for the up escalator
Deutsche Bank is offering escalator notes linked to a basket of equity, currency and commodity indexes. Principal is protected at maturity and returns are locked in if the index rises above certain designated levels during the product term