This week's wrap covers products with strike dates between April 22-28, 2018. Structures reviewed include a variety of payoffs including a credit-linked note) in France, a steepener in Belgium and an uncapped call in Sweden. The enhanced tracker was seen in both the US and Canada, while the autocallable had a strong presence in Japan.

EUROPE

Eighty-one structured products distributed across 13 different jurisdictions struck in Europe during the week.

Credit Industriel et Commercial, which is part of Credit Mutuel, issued CLN Panier Diversifié IG Juin 2023 in France. The five-year note - the company's first credit-linked note - tracks the 125 reference companies that make up the Markit iTraxx Europe S29 Index. The product offers an annual coupon of 4.3% throughout the investment and full capital return at maturity, as long as no credit event (bankruptcy, payment default or debt restructuration) affects more than four of the underlying companies in the index. Otherwise, the coupon and capital return are reduced by 1.075% and 25%, respectively, for each company that encounters a credit event.

BNP Paribas Fortis is distributing the capital protected Fix to Spread Note 2028/3 in Belgium. The 10-year medium-term note (MTN) offers a fixed coupon of 1.25% pa for the first five years of investment and, in the following years, an annual coupon equal to 1.5 times the difference between the 10- and 2 year constant maturity swap rate, subject to a maximum coupon of 4% pa. Costs included in the issue price linked to the structuring and management of the securities include one-off structuring costs of 0.93% of the nominal value and recurring costs of 0.17% pa, or a total of 1.70% if the securities are held until maturity.

In Sweden, Handelsbanken launched Aktieindexobligation Asien Extra 140AA. The four-year MTN protects the full capital invested and participates 120% in the rise of the S&P Pan Asia Low Volatility Index, which measures the performance of the 50 least volatile stocks in the S&P Pan Asia ex New Zealand Index, subject to a maximum of 15 stocks per sector and a maximum of 10 per country.

Meteor Asset Management partnered with Credit Suisse in the UK for the launch of Global Indices Super Step Down Kickout Plan in the UK. The plan is linked to a basket comprising the Eurostoxx 50, FTSE 100 and S&P 500 indices and is available for investment, among others, as 2017/18 and 2018/19 stocks and shares Isa, as pension scheme, and by trustees, companies and partnerships. The product has a knockout feature and is listed on the Luxembourg Stock Exchange.

Bankinter introduced the five-year Bono Estructurado ES0213679CZ7 in Spain. Ninety percent of the investment is placed in a deposit account which returns a coupon of 1.2% after the first year. The remaining 90% is placed in a growth account which tracks the performance of the shares of Caixabank.

NORTH AMERICA

Eighteen structured products struck in North America during the period, including 14 targeted at the US and four aimed at Canadian retail investors.

HSBC Bank issued the Buffered Accelerated Market Participation Securities in the US. The 2.5-year registered notes pay a maximum return of up to 126.75% depending on the performance of the iShares MSCI Emerging Markets ETF. The underlying tracks the MSCI Emerging Markets Index, which is composed of large and mid-cap emerging market stocks. The estimated initial value is 95%.

In Canada, NBC launched a five-year market guaranteed investment certificate. The capital protected deposit participates 125% in the rise of the S&P/TSX Composite Low Volatility Index which is designed to measure the performance of the 50 least volatile stocks included in the S&P/TSX Composite Index. The index is a price return and will not include dividends and/or distributions paid by the issuer.

LATIN AMERICA and MIDDLE EAST & AFRICA

There were no new products in the Latam and Mea region this week.

ASIA PACIFIC

Thirty-nine structured products struck in the Apac region during the week.

Chugin Securities, a subsidiary of Chugoku Bank, is distributing the unlisted registered note M20200424 in Japan. The two-year securities pay a quarterly coupon of 8.3% pa, providing the underlying shares of ROHM Semiconductor and Softbank close at or above 80% of their strike levels on the valuation date. The product is issued via Municipality Finance while Deutsche Bank acts as the derivatives counterparty.

Also in Japan, SMBC Securities teamed up with Kommuninvest, the Swedish local government funding agency, for the launch of Digital M20230426. The product has a maximum term of five years and is linked to the performance of the Nikkei 225 and the Eurostoxx 50. JP Morgan Securities is the derivatives counterparty.