This week's wrap covers structured products with strike dates between September 16-22, 2018. Structures reviewed include a certificate from BNP Paribas linked to two managed funds and one equity index in Ireland, a life-wrapped product from AG Insurance in Belgium linked to the 17 sustainable development goals agreed by the United Nations in 2015, and a credit-linked note from Nordea in Norway. In the US, brokerage firm Stifel launched a callable linked to the Facebook share while UBS and Credit Agricole teamed up in Taiwan for a product linked to the interest.

EUROPE

One hundred and seventy-two structured products distributed across 16 different markets struck in Europe during the week.

BCP Asset Management collaborated with BNP Paribas for the launch of the GPS Select 7 Bond in Ireland. The five-year product, which is linked to three globally diversified investment strategies, is available in two versions: a growth option with 95% capital protection and 110% participation, and a 90% protected growth plus option which offers 200% participation. The certificates are listed in Luxembourg and targeted at, among other, pensions, charities and PRSA (Personal Retirement Savings Accounts) investors who receive investment advice. Redmayne-Bentley has been appointed as the custodian, and intermediaries receive a fee of 2.10% for distributing the product.

AG Insurance launched Smart Invest Bon Europe Sustainable Goals 2028 in Belgium. The 10-year, capital protected life-insurance (Class 23) is distributed via the Fortis network and participates 80% in the upside performance of the Solactive Sustainable Goals Europe MV Index, subject to 30 months backend averaging. The product sold €9.7m and an annual management charge of maximum 1.50% applies.

Unicredit Bank issued the HVB EUR All-Time-High Note in Hungary. The 6.25-year product is linked to the Emerging Focus Strategy Index and uses the lookback payout mechanism. At maturity, the product offers minimum 90% capital return plus the higher between the best monthly performance throughout the investment period (with 90% participation) and the final index performance (100% participation).

Nordea introduced Kredittbevis Europa High Yield 9-24 IV in Norway. The 4.8-year credit-linked note is targeted at private banking investors and offers annual income linked to the performance of the Markit iTraxx Crossover S29 and the 3-month Norwegian Interbank Offered Rate (Nibor).

NORTH AMERICA

Two hundred and twenty-two structured products, split between Canada (46) and the US (114), had strike dates in North America.

Bank of Montreal issued series 874 of the Step-Down Autocallable Principal at Risk Notes (F-Class) in Canada. The product offers a potential fixed return of 12% pa. linked to the performance of the Eurostoxx Banks Index. The notes will not be listed but BMO Capital Markets will provide a secondary market through the order entry system operated by Fundserv. BMO Nesbitt Burns and Desjardins Securities Act as dealers.

Stifel, a full service brokerage and investment banking firm, is distributing Callable Contingent Coupon Equity-Linked Notes (40055QTT9) in the US. The securities pay a coupon of 11% p.a. providing the share of Facebook is at or above 75% of its initial level on the valuation date. The product is issued via Goldman Sachs and an underwriting discount of 1.925% of the face amount, which includes a selling concession of up to 1.75%, applies. The estimated value of the notes is approximately US$978 per US$1,000 face amount.

Also in the US, UBS Financial Services launched Trigger Phoenix Autocallable Optimisation Securities (90284X386) linked to the stock of Banco Bradesco Brazil. The one-year product offers a coupon of 21.7%, paid quarterly, if the share does not fall below 70% of its initial level on the observation date. The product sold US$1.1m, a commission of US$0.15 per security applies, and the estimated value of the securities as of the trade date (September 18) is set at US$9.59.

MIDDLE EAST & AFRICA

Standard Bank launched the five-year Protected Index Top 40 in South Africa. The capital protected note offers 105% uncapped participation in the rise of the FTSE/JSE Africa Top 40 index.

ASIA PACIFIC

One hundred and sixty-eight structured products struck in the Asia-Pacific region during the week. The products were split across four databases: China (25), Japan (12), South Korea (90) and Taiwan (41).

HSBC Bank issued the CNY Note S1 in China. The two-year wealth management scheme is fully capital protected and participates 100% in the performance of the Fidelity Global Multi Asset Income Fund A-Acc-EUR (hedged). The product is putable, and can be terminated early by the investor on December 27, 2018.

SMBC Nikko Securities is distributing DC M20190918 in Japan. The product, which sold JPY2.32bn (US$20.6m) is linked to JPY/USD currency pair. The note pays a fixed coupon of 1% pa. regardless of the performance of the underlying. The bond for the securities is issued by Kfw Bankengruppe while SMBC Nikko Capital Markets acts as the derivatives counterparty.

In South Korea, Shinyoung Securities is marketing DLS 596 which is linked to a basket of two indices (Eurostoxx 50, S&P 500) and one exchange-traded fund (iShares China Large-Cap ETF). At maturity, if no autocall event has taken place during the three-year investment term, the product offers 100% capital return if the worst performing underlying is at or above 60% of its initial level. The securities are also available via Standard Chartered First Bank Korea.

UBS teamed up with Credit Agricole in Taiwan for the launch of a Callable Range Accrual Note. The three-year product is targeted at private banking investors and linked to the constant maturity swap rate and the Libor.