This week's wrap covers structured products with strike dates between June 24-30, 2018. Structures reviewed include a volatility control index in Germany, which is a joint effort between Erste Bank and Solactive, a Stoxx centenary index in Finland, which selects companies that are at least 100 years old, and a Cac mid-cap index in France. In Canada, Toronto Dominion launched a note linked to an S&P utilities index, while Samsung opted for three global benchmarks in South Korea.

EUROPE
Two hundred and eleven structured products distributed across 13 different jurisdictions struck in Europe during the week.

Erste Bank issued Smart Invest Garant IV in Germany. The eight-year, capital protected securities participate 100% in the positive performance of the Solactive Erste Multi Asset Index 35 VC, which aims to achieve an annualised volatility of less than or equal to 7%. To achieve this, the index invests in the Solactive Erste Multi Asset Index 35 and a hypothetical money market position at the 3-month Euribor rate. The index does not allow leverage and considers an adjustment factor of 1.65% pa.

CM-CIC Market Solutions is distributing Autocall Mid Cap Juin 2026 in France. Every year, the eight-year medium-term note (MTN) pays a coupon of 6.1%, if the Cac Mid Cap 60 5% Decrement NTR Index closes at or above 90% of its initial level on the annual observation date. The index represents the 60 largest French equities after the Cac 40 and Cac Next 20. The product is listed in Luxembourg and has a distribution fee of up to 2.25% of the nominal amount applies. Crédit Mutuel CIC provided the bond for this product.

Deutsche Bank partnered with Credit Suisse in Belgium to launch Fund Opportunity Coupon NOK 2023, a six-year, capital protected note offering annual income equal to the annualised performance of the Flossbach von Storch Multiple Opportunities II fund, subject to a minimum of 0% and a maximum of 5% pa.

In Finland, SIP Nordic introduced Satavuotiaat Pörssiyhtiöt Autocall III, a six-year certificate linked to the iStoxx Europe Centenary Select 30. This knockout structure will mature early paying out a 13% coupon per year elapsed, if the index is at or above its initial level on any of the observation dates. The index selects companies from the Stoxx Europe 600 that are at least 100 years old, are expected to pay a dividend within the next month, and have shown a high beta historically. The securities are issued via BNP Paribas and listed on the Nordic Derivatives Exchange.

Mariana Capital Markets is marketing the FTSE 150 Kick Out Plan in the UK. The product, which has a maximum duration of 10 years, is linked to the FTSE Custom 150 Equally Weighted Discounted Return Index and is available in two options, with potential annual return of 9% and 14%. The plan is listed on the Luxembourg Stock Exchange and eligible as direct investment or for Isa/Isa transfers, pensions, companies, trusts and charities. Natixis is the issuer and James Brearley is the plan administrator and custodian.

NORTH AMERICA
Seven hundred and eighty-six products, split between Canada (33) and the US (753), had strike dates in North America.

TD Securities, which is part of Toronto Dominion Bank, launched the Autocallable Coupon Notes Series 200 in Canada. The seven-year product pays a fixed coupon of 8.5% pa, providing the S&P/TSX Capped Utilities Index closes at or above its initial level on the annual observation date. The index imposes capped weights on the index constituents included in the S&P/TSX Composite that are classified in the GICS (Global Industry Classification Standard) utilities sector. A selling commission of C$2.50 is payable to agents whose clients purchase the notes. In addition the bank will pay of fee of up to 0.15% of the aggregate issue price to Industrial Alliance Securities.

UBS issued the Trigger Phoenix Autocallable Optimisation Securities (90284M620) in the US. The registered notes are linked to the iShares MSCI Brazil Capped ETF which  tracks the performance of the MSCI Brazil 25/50 Index. The product offers a coupon of 7.90% pa., paid quarterly, if the underlying level does not fall by 35% or more from its initial level on the applicable quarterly observation date. Otherwise, no coupon is paid for that observation period.

Also in the US, Morgan Stanley launched the Buffered Performance Leveraged Upside Securities (Plus) linked to an equally-weighted basket comprising the Hang Seng China Enterprises, Kospi 200, S&P/ASX 200 and Topix (Tokyo) indices. The product, which raised US$1.8m, offers a capital return of 100% plus the greater of 0% and 200% of the rise in the basket, subject to a maximum overall return of 118.25%, if the basket does not fall by more than 10% from its initial level, at maturity.

ASIA PACIFIC
Two hundred and forty-nine structured products struck in the Asia-Pacific region during the week. The products were split across Australia (seven), China (nine), Japan (49), Singapore (one), South Korea (148) and Taiwan (35).

Sequoia Specialists Investments launched the Sequoia Launch Series 38 in Australia. The three-year, capital protected portfolio insurance product is linked to the performance of the Global X Robotics & Artificial Intelligence ETF, and Robo Global Robotics and Automation Index ETF. The product has a fixed lending rate of 5.95% pa and is wrapped as a deferred purchase agreement.

ETFs were also the underlying assets for HSBC Bank's CNY Note S13 in China. The six-month wealth management scheme can be redeemed early at the end of each month if both CSOP FTSE China A50 ETF (HKD) and Hang Seng H-Share IDX ETF close above 102% of their initial level on the monthly observation date. In that case, the product offers 100% capital return plus a coupon of 7.8% pa.

Aozora Securities launched the Dual Currency Note 20200626 in Japan. The product, for which the bond is issued by Barclays, pays a fixed quarterly coupon of 1.1% pa. At maturity, the product returns the initial investment in Japanese yen, if the final Australian dollar-Japanese yen spot rate is above the valuation rate (initial rate - 12 yen). Otherwise, the product returns the initial capital converted into Australian dollars at the initial spot rate.

In South Korea, Samsung Securities introduced a three-year ELS 19367. The step-down securities are linked to the performance of the German Dax, Hang Seng China Enterprises and S&P 500 indices. The product will be redeemed early at the end of each semester providing the worst performing index closes at or above a predetermined level of its initial level.

DBS Bank issued a 12-month US dollar-denominated Knock-In Memory Autocallable Note 078000005924 in Taiwan. The unlisted registered note linked to the share of Gilead Sciences and the Van Eck Vectors Gold Miners ETF has a knockout/snowball payoff profile and is targeted at private banking investors.