US Wrap: Momentum accelerates towards week end
Issuance gathered pace yesterday as four providers launched a diverse spread of 18 products. Bank of America unveiled accelerated growth and kick-out structures, neither of which offered exposure to the usual S&P 500 index, but instead exposed investors to emerging markets equity.
BofA's autocallable product, which links to the iShares FTSE/Xinhua China 25 Index Fund, offers no principal protection; while the accelerated growth product, which links to the MSCI Emerging Markets Index, pays 200% of the index's performance but incorporates a 10% downside buffer. Both products will be sold through Merrill Lynch.
Barclays broadened exposure on a more moderate scale, offering an accelerated growth structure which links to the iShares Russell 2000 Index Fund, alongside the stock S&P 500-linked note.
JP Morgan joined ABN Amro's week-long trickle of reverse convertibles, launching 12 notes, while the Dutch bank pushed its weekly tally to 16 by unveiling two more structures. Credit card companies are beginning to make frequent appearances as underlying stock, with yesterday's issuance including notes linked to American Express and Capital One Financial.
Issuer | Product type | Underlying | Pricing date | Maturity date |
ABN AMRO Holding N V | Reverse Convertible | Capital One Financial | May 12 2009 | Aug 17 2009 |
J P Morgan Chase & Co | Reverse Convertible | Bank of America | May 26 2009 | Aug 28 2009 |
J P Morgan Chase & Co | Reverse Convertible | Arch Coal | May 26 2009 | Aug 28 2009 |
J P Morgan Chase & Co | Reverse Convertible | US Steel | May 26 2009 | Aug 28 2009 |
J P Morgan Chase & Co | Reverse Convertible | Research in Motion | May 26 2009 | Aug 28 2009 |
J P Morgan Chase & Co | Reverse Convertible | Jacobs Engineering Group | May 26 2009 | Nov 30 2009 |
J P Morgan Chase & Co | Reverse Convertible | CSX | May 26 2009 | Nov 30 2009 |
J P Morgan Chase & Co | Reverse Convertible | American Express | May 26 2009 | Nov 30 2009 |
J P Morgan Chase & Co | Reverse Convertible | Alcoa | May 26 2009 | Nov 30 2009 |
J P Morgan Chase & Co | Reverse Convertible | Lowe's Companies | May 26 2009 | May 28 2010 |
J P Morgan Chase & Co | Reverse Convertible | General Electric | May 26 2009 | May 28 2010 |
J P Morgan Chase & Co | Reverse Convertible | Freeport McMoran | May 26 2009 | May 28 2010 |
J P Morgan Chase & Co | Reverse Convertible | Caterpillar | May 26 2009 | May 28 2010 |
Barclays Bank PLC | Accelerated Growth | ishares Russ 2000 IF | May 22 2009 | May 26 2011 |
Barclays Bank PLC | Accelerated Growth | S&P 500 | May 22 2009 | May 26 2011 |
ABN AMRO Holding N V | Reverse Convertible | Microsoft | May 12 2009 | Nov 13 2009 |
Bank of America | Review | iShares FTSE/Xinhua China 25 | May-09 | Jun-11 |
Bank of America | Accelerated Growth | MSCI Emerging Markets | May-09 | May-11 |
Source: Future Value Consultants & SEC filings
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