Resource investments prove popular but remain relatively risky
Royal Bank of Canada is the only player in the issuance with its reverse convertibles, a handful of which are based on natural resources.
Royal Bank of Canada (RBC) and its reverse convertibles dominate the latest issuance for the US market. Resources and financials are the dominant themes, neither of which are new trends for the market.
Northern Oil and Gas provides the underlying for one six-month reverse convertible. It pays an annualised rate of 12.25% and it has a downside protection barrier of 80%.
The product's riskmap score is a whopping 7.2, much higher than the overall score of 3.1. This means that Future Value
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