This week's wrap covers products with strike dates between January 21-27, 2018. Structures reviewed include a Morgan Stanley product in France which distributes the nominal invested 50:50 between two wrappers, a Goldman Sachs income plan in the UK, a Polish certificate from BNP Paribas linked to a basic resources index and a number of products in Asia linked to the Australian dollar.

EUROPE
Forty-six structured products distributed across eight different jurisdictions struck in Europe during the week.

Groupama teamed up with Morgan Stanley for the launch of Defineo Janvier 2018 in France. The eight-year note is linked to the Eurostoxx 50 and the capital invested is equally distributed between a one-year guaranteed profit wrapper and a risk investment. After the end of the first year the product pays a fixed coupon of 5% and 50% of the capital is automatically redirected to a fund in euro. The product is available via a life insurance contract and is listed on the Luxembourg Stock Exchange for an issued amount of €130m.

In Belgium, AG Insurance launched Post Optima Dynamic Deep Value 01/2028, a 10-year unit-linked life insurance (Class 23) product which offers 75% participation in the positive performance of the Dynamic Deep Value Equity Europe Index. The capital protected fund is distributed via the BPost Bank channel and BNP Paribas Fortis acts as the guarantor.

Reyker introduced the FTSE 100 Income Plan in the UK. The investment, which has a maximum term of eight-years, can be held, among other, as stocks & shares Isa, self-invested personal pension (SIPP), and by companies, charities and trusts. The product is listed on the Luxembourg Stock Exchange and Goldman Sachs International acts as the counterparty bank.

Bank BGŻ, the Polish subsidiary of BNP Paribas, launched Kopalnia Zysku II, a 2.5-year certificate linked to the Stoxx Europe 600 Basic Resources Price EUR Index. The zloty denominated product pays a semi-annual coupon of 3.9% providing the index is at or above its initial level on the observation date. The size of the issue is PLN150m (€35.9m) and a minimum investment of PLN10,000 applies.

NORTH AMERICA
One hundred and eighty-one structured products struck in North America during the period. They were all targeted at the US market.

Goldman Sachs Private Banking collaborated with Incapital for the launch of Trigger Notes (40055ACU9). The 1.5-year unlisted registered notes offers 100% capital return plus the greater of 0% and 100% of the rise in the underlying Eurostoxx 50 providing the European benchmark index has not fallen by more than 32% from its initial level at maturity. Goldman has engaged Incapital to provide marketing services relating to the notes for which Incapital will receive a fee. The estimated value of the notes on the trade date is expected to be between US$950 and $980 per $1,000 face amount.

Also in the US, Citigroup Global Markets issued Market Linked Notes (17324CQ90), a five-year registered note linked to a weighted basket comprising the S&P 500 (25%), Eurostoxx 50 (25%) and iShares iBoxx $ High Yield Corporate Bond ETF (50%). The product, which protects full capital, participates 105% in the positive performance of the basket. Citi expects that the estimated value of the notes will at least be US$900 per note. An underwriting fee of 2.5% applies.

LATIN AMERICA and MIDDLE EAST & AFRICA
There were no structured products striking in the Latam and Mea regions this week.

ASIA PACIFIC
Two hundred and forty-nine structured products struck in the Apac region during the week. The products where issued across four markets, of which South Korea, with 215 products, was the most active, followed by China (13), Hong Kong (12),  Japan (nine).

HMC Investment Securities, which is part of the Hyundai Motor Group, is distributing HMC ELS 1792 in South Korea. The equity-linked securities (ELS) are linked to a basket comprising Eurostoxx 50, Hang Seng China Enterprises and S&P 500 and will be redeemed early, at the end of each six-month period, if the level of the worst performing index is at or above a predetermined level of its initial level.

In Japan, Nomura Securities, together with Iyogin Securities, launched DC JPY/AUD M20200123, a two-year, unlisted registered note, which is linked to the appreciation of the Australian dollar relative to the Japanese yen. The product pays a fixed quarterly coupon of 1.5% p.a. and Nomura Holdings, the issuer, has the option to call the securities every quarter. In that case the product returns 100% of the nominal invested, paid in JPY.

Bank of China issued Target Rate Investment 28N in Hong Kong. The three-month deposit is denominated in Australian dollar and pays a 1.53% p.a. coupon if the spot exchange rate for the AUD/USD currency pair, expressed in the amount of US dollar per one Australian dollar, is at or above the target rate (initial fixing rate +0.0100) on the final fixing date. Otherwise the coupon is 1.28% p.a.

Agricultural Bank of China launched Narrow CNY Note S11 in China. The wealth management scheme has a three-month term and is linked to the performance of gold. At maturity, if the closing price of gold is above 97% or below 103% of its initial level, the product offers 100% capital return plus a coupon of 5.5% p.a.