This week's wrap covers products with strike dates between February 25 and March 3, 2018. Structures reviewed include a private placement from ABN Amro in France, products from Credit Suisse in the UK, Hungary and Japan, an index which measures low volatility or low variance strategies in Canada, and deposits in Brazil, Peru and Israel.

EUROPE

Eighty-four structured products distributed across 12 different jurisdictions struck in Europe during the week.

BNP Paribas Fortis is distributing the USD Capped Note Emerging Markets 2025/2 in Belgium. The seven-year, 100% capital protected medium-term note is denominated in US dollars and participates 100% in the positive performance of the MSCI Emerging Markets index, subject to 18 month backend averaging. The product sold $3.3m (€2.7m) during the subscription period. Costs include a one-off structuring cost of 1.33% and a recurring annual fee of 0.195% of the nominal amount.

"The demand for investments in USD was fairly week in 2017 and we don't expect this to change any time soon," said Johan De Buyck, product manager invest, at BNP Paribas Fortis. "The choice for an equity linked structured product denominated in dollars is usually more dictated by the nature of the underlying index, e.g. MSCI Emerging Markets, rather than by the currency itself."

Banque Neuflize-OBC, a subsidiary of ABN Amro, launched Objectif Croissance Février 2025 in France. The seven-year autocallable, which is eligible via either a unit-linked life-insurance or an investment contract, is linked to the Eurostoxx 50 and, if redeemed early, returns 100% of the nominal invested plus a coupon of 6.50% p.a. The product, which is a private placement, is issued via Natixis and listed on the Luxembourg Stock Exchange for an issued amount of €50m. A commission fee of 1.2% applies.

In the UK, Augere, a newly established company which focuses on providing investment solutions for the IFA, intermediary and institutional market place, partnered with Reyker (plan manager) and Credit Suisse (counterparty bank) for the launch of FTSE 100 Kick Out Plan Issue 1. The product has a maximum duration of six-years and can be held, among other, by individuals via a stocks & shares Isa, a self-invested personal pension (SIPP), small self-administered scheme (SSAS) and by corporates, charities and trusts.

Credit Suisse was also the issuing party behind Protect Multi Kupon Express which was distributed via Erste Group Bank to retail investors in Hungary. Each semester the product pays a coupon of 3% providing the Eurostoxx Banks, Stoxx Europe 600 Basic Resources and Stoxx Europe 600 Health Care indices all close at or above 80% of their initial level on the semi-annual observation date.

NORTH AMERICA
Two hundred and sixty-six structured products struck in North America during the period. The products included 57 products targeted at investors in Canada and 209 products aimed at the US market.

National Bank of Canada issued the NBC Marathon Accelerator Note in Canada. The three-year, 90% protected product is linked to the S&P/TSX Composite Low Volatility Index which measures the performance of the least volatile stocks in the Canadian listed universe. The index benchmarks low volatility or low variance strategies and its constituents are weighted relative to the inverse of their corresponding volatility, with the least volatile stocks receiving the highest weights.

Morgan Stanley introduced the Trigger Performance Leveraged Upside Securities in the US. The six-year unlisted registered notes sold $827,000 at inception and participate 117.5% in the upside performance of the DJ Industrial Average Index. The estimated initial value of the securities was set at $941.90 on the pricing date and the sales commission was fixed at $35.

LATIN AMERICA

The 33 structured products that struck in the Latam region this week were split across three markets: Mexico (29), Peru (three) and Brazil (one).

BBVA Continental launched Diva Digital 2, a one-year structured deposit, in Peru. The product, which is denominated in Peruvian Nuevo sol, offers a coupon of 10% providing the shares of Alphabet, Amazon, Facebook and Netflix are all above their initial levels at maturity.

BTG Pactual is distributing COE Melhoe Entre Taxa Pré-fixada (PDI0039) to retail and private banking investors in Brazil. The deposit has a term of one year and is linked to the Taxa CDI (Interbank Certificate of Deposit Rate). The product uses the Annapurna payout structure where the return is based on the maximum of a coupon or a participation in the growth of the underlying.

MIDDLE EAST & AFRICA

There was one structured product with a strike date in the Mea region this week.

First International distributed a US dollar deposit in Israel. The two-year fully protected product participates 55% in the S&P 500, subject to quarterly averaging throughout the investment period.

ASIA PACIFIC

Eighty-nine structured products struck in the Apac region during the week. The products where split across four: South Korea (51 products), Japan (28), Hong Kong (seven) and Singapore (three).

Maybank introduced Saver Series 2018 in Singapore. The five year deposit pays annual income of 2% and is linked to the Singapore Swap Offer Rate. The bank has the right to terminate the product early at the end of each year. In that case the product offers 100% capital return.

In Japan, 82 Securities distributed Stepdown Digital M20210302, a three-year income product linked to the Nikkei 225 and S&P 500. The product offers a quarterly step down coupon, starting at 8% p.a. for the first quarter, if both indices close at or above 105% of their initial price on the valuation date. Otherwise a coupon of 1% is paid. Credit Suisse acts as the derivatives counterparty for the product which sold JPY8.3bn ($77m) during the subscription period.

Yuanta Securities launched My ELB 100 in South Korea. The equity-linked bond (ELB), which has a tenure of just three months, is linked to the performance of the Kospi 200. If the level of the index is at or above 10% of its initial level at maturity, the product offers a capital return of 100.4488%.