US Wrap: Bank of America follows RBC lead to Japan

Bank of America has launched an accelerated growth note linked to the Nikkei 225 index, following the issuance of a note 10 days ago by Royal Bank of Canada which tracked the Japanese equity benchmark as one of three indexes in a basket.

The note, which will be sold through Merrill Lynch, gives investors 300% participation in the index, up to a cap of between 13 -17% returns in a year and three months. No downside protection is on offer. It is a stark contrast to the issuance of the last week, which was dominated by dozens of reverse convertibles linked to US equity.

Issuer

Product type

Underlying

Pricing date

Maturity date

Bank of America

Accelerated Growth

Nikkei 225

Jul-09

Oct-10

Source: Future