This week's wrap covers structured products with strike dates between June 17-23, 2018. Structures reviewed include products linked to the Euribor, Libor and Wibor in Europe. In the Americas, NBC tracked the performance of high-yielding stocks in Canada's energy sector, while a UBS autocallable in the US attracted sales of less than US$1m, despite offering a 10.7% coupon. Finally, in Asia, Citi targeted investors in China and MUFG Securities Emea popped up as bond provider in Japan.
EUROPE
One hundred and eight structured products distributed across nine different jurisdictions struck in Europe during the week.
SG Private Banking launched a three-year floating-rate note in Belgium. The capital protected product, which is issued via the Luxembourg domiciled SG Issuer vehicle, offers a quarterly coupon equal to the three-month US dollar Libor (London Interbank Offered Rate), subject to a minimum coupon of 2.4% pa and a maximum coupon of 4% pa. The issue price of 100% includes structuring costs of 0.26% and distribution costs of up to 1.95%.
Caisse D'Epargne is distributing TrésoCOP 2 in France. The four-year life wrapped product is issued via Natixis and participates 100% in the Euronext Climate Orientation Priority 50 Ewer Index, subject to a minimum capital return of 90% and a maximum capital return of 120%. The index consist of 50 low carbon and low volatility, equally weighted stocks in Europe. A commission of 2% applies for the product, which is listed on the Luxembourg Stock Exchange.
Dura Capital, a new structured product provider founded in March 2018, is distributing FTSE Booster Plan 6 in the UK. The six-year plan offers 210% participation in the FTSE 100, calculated from 90% of the initial index level, capped at a return of 105%. Credit Suisse is the issuer and the product is eligible for direct investments, Isas (excluding Isa transfers), self-invested personal pensions (Sipps) and most trusts.
In Germany, Dekabank launched Geldmarktanleihe 06/2025, a seven-year medium-term note linked to the Euribor (Euro Interbank Offered Rate). Every quarter the product offers a coupon equal to three-month Euribor, floored at 0.30% pa and capped at 1.60% pa.
K&H Bank, a subsidiary of KBC, collaborated with Societe Generale for the launch of the Autocall Reverse Convertible Artificial Intelligence in Hungary. The three-year securities are linked to a basket composed of the shares of Nvidia, Twitter and Viacom. SG pays a remuneration of up to 1.50% pa of the nominal amount of notes effectively placed by the distributor.
Raiffeisen Polbank issued Wygraj z Wiborem VI in Poland. The two-year deposit pays a pro-rated quarterly coupon of 3% pa for the number of days during the quarter the six-month Wibor (Warsaw Interbank Offer Rate) has stayed within the range of 1.67% and 1.75%.
NORTH AMERICA
One hundred and two products, split between Canada (19) and the US (83), had strike dates in North America.
National Bank of Canada launched an autocallable contingent income note linked to the S&P/TSX High Income Energy Index, which measures the performance of high-yielding stocks in the Canadian energy sector. The product pays a fixed coupon of 5.75% pa, providing the index is at or above 60% of its initial level on the annual observation date. A selling commission of 2.50% applies.
Goldman Sachs Finance issued leveraged buffered basket-linked notes (40055QFT4) in the US. The securities have a term of two-years and participate 200% in a weighted basket comprising Eurostoxx 50 (37%), FTSE 100 (23%), Topix Index (Tokyo) (23%), S&P/ASX 200 Index (8%) and Swiss Market Index (9%). The estimated value of the notes on the trade date is expected to be between US$950 and $980 per $1,000 face amount.
Also in the US, UBS launched trigger phoenix autocallable optimisation securities linked to the SPDR S&P Oil & Gas Exploration & Production ETF. The product sold $726,000 and offer a coupon of 10.7% pa (paid quarterly), providing the ETF does not fall by more than 25% from its initial level on the observation date. The principal amount per security is $10, a commission of $0.15 per security applies and the estimated value of the securities is set at $9.71.
ASIA PACIFIC
Ninety-seven structured products struck in the Asia-Pacific region during the week. The products were split across four databases: China (one), Japan (eight), South Korea (52) and Taiwan (36).
Citi introduced Enhanced Yield 2018 S15H in China. The capital protected product has a term of just over two months and is linked to the appreciation of the US dollar relative to the Hong Kong dollar.
Shizugin TM Securities is distributing KI M20200619 in Japan. The two-year product pays a fixed quarterly coupon of 1.2% pa and will be redeemed early if the underlying Nikkei 225 closes at or above its strike level on the valuation date. The bond of the product is issued by MUFG Securities Emea.
In South Korea, NH Investment Securities issued the autocallable DLS 3266. The securities, if not redeemed early, return 100% of the nominal invested at maturity, plus an additional coupon of 15%, providing the worst performing of three commodities - Brent crude oil, WTI crude oil and silver - closes at or above 85% of its initial level on the final valuation date.
First Securities launched the six-month autocallable range accrual note 037001003553 in Taiwan. The securities are denominated in US dollars and are linked to a basket comprising Semiconductor Manufacturing International, Taiwan Semiconductor and Vaneck Vectors Gold Miners ETF. The unlisted registered notes are issued via SG.