This week's wrap covers products with strike dates between February 4-10, 2018. Structures reviewed include products from Goldman Sachs in both France and Norway, a Credit Suisse certificate linked to a corporate bond fund in Sweden, a currency linked deposit in Mexico and securities linked to ETFs in China and Japan.

EUROPE

Forty-nine structured products distributed across ten different jurisdictions struck in Europe during the week.

In France, Equitim collaborated with Goldman Sachs to launch 10-year autocallable notes on the Eurostoxx 50. The securities, which are available as life insurance contracts, are listed on the Luxembourg Stock Exchange for an issued amount of €30m. The product will be redeemed early, if, on the annual valuation date, the index is at or above its initial level. In that case the product returns 100% of the capital invested plus a coupon of 7% per year elapsed. Goldman will pay Equitim a selling commission of up to 5.2% of the aggregate nominal amount.

Goldman Sachs was also active in Norway, where the US bank partnered with Garantum for the launch of Sprinter Europa 5 år nr 3314. The securities, which have a term of five-years and are distributed via financial advisers, participate 165% in the rise of the Eurostoxx 50. The product returns the nominal invested at maturity providing the index has not fallen by more than 30%.

Societe Generale is marketing a Memory Express Certificate in Austria and Germany. The six-year product, which has a step-down early redemption feature (with European barrier), pays an annual coupon of 5% providing the Eurostoxx Bank Index is at or above 62% of its initial level on the observation date. The certificate is listed on the exchanges in Frankfurt and Stuttgart and issued via SG Issuer at 101% of the nominal value.

Strukturinvest is distributing 1718 Marknadswarrant VAL Nordic Corporate Bond in Sweden. The five-year certificate is issued by Credit Suisse and is linked to the performance of the Carnegie Corporate Bond Fund. The fund has a target volatility of 2% and invests in Nordic corporate bonds. The product is listed on Nasdaq OMX Stockholm and is issued at 8%.

NORTH AMERICA

Five structured products struck in North America during the period. They were all targeted at the US market.

HSBC issued the Dual Directional Barrier Notes (40435FRL3) in the US. The five-year securities sold $1m and are linked to the S&P 500 and the Russell 2000. At maturity, if the worst performing index is at or above its initial level, the product participates 155% in the rise of the index. HSBC will pay underwriting discounts of up to 0.75% per $1,000 principal amount in connection with the distribution of the securities to other registered broker-dealers. The estimated initial value of the product on the pricing date was set at $953 per security.

Also in the US, Incapital launched the 10-year Verizon InterNotes which are linked to the interest rate. The product sold US$2.2m and pay a fixed coupon of 3.55% p.a. The product can be called by the issuer, Verizon Communications, after the first year of investment. In that case the securities offer 100% capital return.

LATIN AMERICA

There were 17 structured products striking in the Latam region this week. They were targeted at retail investors in Mexico.

Monex issued the Double no Touch deposit which is linked to the appreciation of the US dollar relative to the Mexican peso. The capital protected product, which has a term of just two weeks, uses the digital payoff structure and pays a 2% p.a. coupon providing the underlying remains between 18.067 and 18.627 during the investment period.

MIDDLE EAST & AFRICA

There were no structured products striking in the Mea region this week.

ASIA PACIFIC

One hundred and fifty-nine structured products struck in the Apac region during the week. The products where split across four markets, of which South Korea, with 113 products, was the most active, followed by China (20), Japan (15) and Hong Kong (11).

HSBC issued the six-month CNY Note S9 in China. The product is wrapped as a wealth management scheme and is linked to two exchange-traded funds: SPDR Gold Shares and VanEck Vectors Gold Miners ETF. The product can be terminated early, at the end of each month, providing the worst performing ETF is at or above 102% of its initial level. In that case the product returns 100% of the capital invested plus a coupon of 9% p.a.

SBI Securities partnered with Deutsche Bank for the launch of Digital M20200205 in Japan. The two-year note offers a monthly coupon of 11% p.a. providing the Next Funds Nikkei 225 Leveraged Index ETF closes at or above 85% of its starting level on the valuation date. Otherwise the coupon is 0.1% p.a.

In Hong Kong, Bank of China issued Target Rate Investment 29H. The three-month deposit, which is denominated in Australian dollar, pays a fixed coupon of 1.30% p.a. if the spot exchange rate for AUD/USD expressed in the amount of US dollar per one Australian dollar, is at or above the target rate (initial fixing rate +0.0200) on May 3, 2018. Otherwise the coupon is 1% p.a.

Samsung Securities is distributing equity-linked security (ELS) 18094 in South Korea. The three-year product is linked to a basket comprising Eurostoxx 50, Hang Seng China Enterprises Index and the Kosdaq 150 Index. The product will be redeemed early at the end of each four-month period if the worst performing index is at or above a predetermined level of its initial level.