Reverse convertibles get a clean sweep in latest US structured products filings

All the structured products filed with the US Securities and Exchange Commission on March 27 were reverse convertibles

gear-shift
Going forward in reverse

Structured products registered for the public issue market with the US Securities and Exchange Commission on March 27 consisted entirely of short-maturity reverse convertibles linked to single stocks of household US names.

UBS, which listed seven of the 10 new products, has offered investors structures linked to United States Steel, Apple, Peabody Energy, Alpha Natural Resources and Corning.

JP Morgan's three reverse convertibles are linked to Amazon, Prudential Financial and Cameco.

Of the UBS filings, annualised rates range from 7.88–12.56%. Downside protection barriers range from 80% in the case of the Apple product to 60% for the product linked to Alpha Natural Resources.

JP Morgan's highest-paying product is linked to Cameco and offers investors an annualised rate of 7–9.5% with a 75% downside buffer.

us-issuance-march-27

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here