This week's wrap covers structured products with strike dates between June 3-9, 2018. Structures reviewed include the first cliquet in Belgium since January 2014, an Amundi autocallable in France which is accessible via a tax free wrapper, and a CLN from SEB in Finland. In the US, HSBC is tracking the iShares MSCI ACWI ETF while BNP Paribas teamed up with Societe Generale in Taiwan for the launch of a memory coupon note.

EUROPE
Seventy-seven structured products distributed across 11 different jurisdictions struck in Europe during the week.

Nagelmackers is distributing the Annual Restrike Note in Belgium. The 10-year, medium-term note, which uses the cliquet payoff structure and is linked to the Eurostoxx Select Dividend 30 index, sold €3.6m during the subscription period. Every year, the annual performance of the index is registered, subject to a cap of 6% and a floor of minus 6%. At maturity, the product offers a capital return of 100% plus the sum of the 10 annual performances, subject to a minimum overall return of 104%.

Credit du Nord launched Etoile Euro Actions 06/2024 in France. The six-year fund - guaranteed by Amundi Finance and managed by Etoile Gestion, a subsidiary of Amundi Asset Management - is linked to the Eurostoxx 50 index and can be entered via a PEA (Plan d'epargne en actions), a tax-free wrapper that allows investors to hold up to €150,000 of investments free of tax, providing the product is held for at least five years.

In Finland, Alexandria introduced a credit-linked note (CLN) in the shape of Luottokori Pohjois-Amerikka Tuottohakuinen 15. The five-year investment, which is issued via SEB, is linked to the Markit CDX North America High Yield Index. The product is listed on the Irish Stock Exchange for an amount of €838,000. A commission of maximum 2% of the subscribed amount applies and SEB will charge a structuring fee of approximately 1.20% pa.

Strukturinvest is marketing 1785 Indexbevis Sverige TwinWin in Sweden. The five-year bull bear is linked to the OMX Stockholm 40 Equal Weighted ER Index, which tracks the 30 shares in the OMX Stockholm 30 plus the 10 most traded shares in the OMXS30Next Index. The product is issued via SEB and a fee of 3% is added to the issue price.

Bank Millennium launched Lokata Inwestycyjna Stabilny Kurs XL in Poland. The 1.5-year deposit is linked to the appreciation of the euro relative to the Polish zloty. If the euro-zloty rate stays within a range of 4.14PLN and 4.24PLN (daily observations) a return of 6% pa is registered.

NORTH AMERICA
Nine products had strike dates in North America.

HSBC issued Buffered AMPS (Accelerated Market Participation Securities) in the US. The 20-month, unlisted registered notes participate 150% in any positive return of the iShares MSCI ACWI ETF, capped at a maximum of 14%. The ETF, which has net assets of US$8.5bn (as of June 1), seeks to track the investment results of the MSCI ACWI Index, which is composed of large- and mid-capitalisation developed and emerging market equities. The estimated initial value of the securities is expected to be between US$950 and US$980 per security. HSBC or its affiliates will pay underwriting discounts of up to 1.50% and referral fees of up to 0.67% per US$1,000 in connection with the distribution of the securities to other registered broker-dealers.

In Canada, Bank of Montreal launched Principal at Risk Notes series 602. The seven-year product pays annual income of 6% providing the BMO US High Dividend Covered Call ETF is at or above 70% of its initial level on the observation date. BMO Capital Markets is the calculation agent while BMO Nesbitt Burns and Desjardins Securities act as dealers. A selling concession of 3% applies.

ASIA PACIFIC

Ninety-nine structured products struck in the Apac region during the week. The products were split across two databases: Japan (15) and Taiwan (84).

Tokai Tokyo Securities introduced KI M20210610 to retail investors in Japan. The three-year digital, which is also available via Nishi Nippon City, is linked to the share of MS&AD Insurance Group Holdings, a Nikkei 225 company with businesses that include Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance. The bond for the securities is provided by Svensk Exportkredit. Nomura acts as the derivatives counterparty.

BNP Paribas collaborated with Societe Generale for the launch of a memory autocallable note in Taiwan. The one-year registered note is linked to a basket comprising the Vaneck Vectors Gold Miners ETF and the shares of Metlife, Procter & Gamble and Wells Fargo. The product is denominated in US dollars and targeted at private banking investors.

Another memory autocallable note, also for private investors in Taiwan, was issued by DBS Bank. The one-year securities are denominated in Australian dollars and linked to two exchange-traded funds: SPDR S&P Metals ETF and Mining and Vaneck Vectors Oil Services ETF.