This week's wrap covers products with strike dates between January 14-20, 2018. Structures reviewed include an offering from Morgan Stanley in France, a Deutsche Bank product in Belgium linked to a German index, a UK kickout plan from Commerzbank, a memory coupon note from Societe Generale in Taiwan and a product in South Korea, linked to the Kospi 200 Leverage, that promises a 'happy ending' at maturity.

EUROPE

One hundred structured products distributed across nine different jurisdictions struck in Europe during the week.

Morgan Stanley issued EDF Rendement Semestriel in France. Every six months, including at maturity, if the share of Electricite de France is at or above 60% of its initial level, the product offers a coupon of 3%. Otherwise, no coupon is paid for that period. The product is listed on the Luxembourg Stock Exchange for an issued amount of €30m.

In Belgium, Deutsche Bank collaborated with Societe Generale for the launch of the German Equities 2024 Note. The 90% capital-protected, medium-term note participates 100% in the positive performance of the Dax Price Index, subject to an overall maximum return of 135%. Deutsche, as the distributor, is granted a discount on the issue price of up to 0.80% p.a. of the nominal amount of the notes by SG.

Banca Aletti, part of the Banco Popolare group, issued the Coupon Premium Certificate in Italy. The product pays an annual income of 6% providing the underlying Eurostoxx Telecoms Index is at or above 75% of its initial level on the annual observation date. The certificate is listed on Borsa Italiana and can be redeemed early each year, if the index is at or above its initial level.

Meteor Asset Management introduced Super Step Down Kickout Plan in the UK. The six-year MTN is linked to the Eurostoxx 50 and FTSE 100 and is issued by Commerz. A minimum investment of £5,000 applies to the product, which is listed on the London Stock Exchange and can be accessed through the 2017-2018 tax year stocks and shares Isa, as a pension scheme, and by trustees, companies and partnerships.

In Switzerland, Vontobel issued Double Coupon Multi-Defender Vonti linked to a basket of three (gold) mining companies. The certificate is linked to the shares of Barrick Gold, Freeport-McMoran and Kinross Gold and is characterised by a guaranteed 9% coupon, several barriers as well has by a - albeit only conditional - redemption at the nominal value. Vontobel estimates the issuer estimated value of the certificate at 97.94%, which gives a total expense ratio of 2.06%. The product is listed on the Six Swiss Exchange and a distribution charge of up to 1% applies.

NORTH AMERICA
Seventy-nine structured products struck in North America during the period. They were all targeted at the US market.

Barclays issued the Callable Contingent Coupon Notes in the US. The unlisted registered notes offer a semi-annual coupon of [7%-8]% if both the S&P 500 Index and the SPDR S&P Oil & Gas Exploration & Production ETF are equal to or greater than 60% of their respective initial levels. The estimated value of the notes on the initial valuation date, based on Barclays' internal pricing models, is expected to be between $925.00 and $958.50 per note. A commission of 2.8% applies.

Another UK bank, HSBC, launched the Buffered Autocallable Yield Notes in the US. The 1.5-year securities sold US$5.4m and are linked to the performance of the Russell 2000 and iShares MSCI EAFE ETF. The estimated initial value of the notes on the pricing date is US$988 per note and the underwriting discount is set at $0.50.

LATIN AMERICA
There were no structured products striking in the Latam region this week.

MIDDLE EAST & AFRICA
No new structured products struck in the Mea region this week.

ASIA PACIFIC
Three hundred and fifty-one structured products struck in the Apac region during the first two weeks of the year. The products where issued across four markets, of which South Korea, with 262 products, was the most active, followed by Taiwan (62), Japan (15), Hong Kong (seven) and China (five).

DBS Bank teamed up with SG Issuer for the launch of Memory Autocallable Note in Taiwan. The unlisted registered note, which is targeted at private banking clients, is denominated in US dollars and linked to the Utilities Select Sector SPDR Fund and the shares of Nvidia.

Bank of China issued the three-month Target Rate Investment 24D in Hong Kong. The deposit is denominated in Australian dollars and pays a coupon of 1.35% pa, if the final fixing rate of the Australian and US dollar currency pair is at or above the target rate (initial fixing rate +0.0200) on the final fixing date. Otherwise the coupon is 1%.

In Japan, Chugin Securities distributed M20200117, a two-year security linked to the stocks of Isetan Mitsukosh and Showa Denko. The product sold JPY300m ($2.7m) and will be redeemed early, quarterly, if both shares close at or above their initial level on the valuation date. The securities are issued via Municipality Finance and JP Morgan are the derivatives manufacturers.

Dongbu Securities launched DB Happy Plus ELS 1941 in South Korea. The three-year, autocallable, equity-linked securities (ELS) promise to return the capital invested plus a fixed coupon of 15.3% providing the underlying Kospi 200 Leverage is at or above 65% of its initial level at maturity.