US wrap: Reverse convertibles back in favour
Demand in the US is swinging back to its regular staple in the form of reverse convertibles
Reverse convertibles have re-established themselves as US investors' preferred structure. For some months, index-linked products were the most popular but the latest offerings have tipped the balance back in favour of the single-stock reverse convertible.
The structure is always the favoured product of Barclays Bank, which has issued a reverse convertible linked to coal mining company Massey Energy. The three-month product offers an annualised return of 20% with a 78% downside barrier, after
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