Product snapshot: The return of the rainbow

The expensive rainbow option has gained popularity, particularly with private banks, after the increase in interest rates since October 2016 which has pushed US structured product providers to be more innovative around the payoffs used in the market. Since the beginning of 2017, seven products were issued in the US, six of which were distributed by UBS, including the Allocation Securities - ETF Basket (40435C351) , a five-year registered note issued by HSBC and linked to a basket comprising the