Tenors get extended as structurers face poor market conditions
Maturities for US structured products get stretched and Barclays issues a reverse convertible with a high risk rating
Tenors in the latest issuance have been stretched, possibly due to tough structuring conditions resulting from low rates and volatility.
HSBC has issued a leveraged product with a 10-year tenor, which is almost unheard of for retail equity-linked products. The product tracks the S&P 500 and has a participation rate of 180-200%. If the downside barrier of 50% is breached capital will be lost at the rate of 1:1. The product has a relatively low riskmap score of 6.3 and an overall score of 3.8.
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