US Wrap: Equity bulls come out in force with growth structures
Accelerated growth products were the only structures to be launched in the US market yesterday, linking to both international and domestic equity. International exposure was provided by two products linked to the iShares MSCI Eafe Index fund. It was added to an index basket in Deutsche's Capped Buffered Underlying Securities, a basket that also included the S&P 500, Russell 2000, and Nasdaq 100, marking Nasdaq's first appearance this year.
One of the most highly leveraged products was from Goldman Sachs, which sees downside participation not only creeping above 100%, but beyond the 111.11% which has been common recently, to 142.86%. The 18-month product allows investors to participate 300% in gains in the S&P 500 index, with a 30% downside buffer. Returns are capped at 21%, which if reached constitutes a 12.74% annualised coupon. None of the six products lasts more than 18 months or features any downside protection greater than 30
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