This week's wrap covers structured products with strike dates between July 29 and August 4, 2018. Structures reviewed include offerings from Natixis, KBC, Banca IMA and Commerzbank in Europe, a collaboration between HSBC and Morgan Stanley Wealth Management in the US, and products from Credit Suisse and Societe Generale in Apac.

EUROPE
One hundred and eighty-seven structured products distributed across 13 different markets struck in Europe during the week.

Natixis is distributing Magenta Climat et Transition Énergétique in France. The five-year, 90% protected product, which is eligible as a life-insurance contract, participates 100% in the rise of the Euronext Climate Objective 50 EW Index, capped at a maximum capital return of 130%. The index reflects the performance of the top 50 stocks, based on climate score and liquidity, from the Euronext Climate Europe Index. The product is listed on the Luxembourg Stock Exchange and a commission of 1% applies.

KBC IFIMA, the international finance company of KBC, issued a three-year interest linked note in Belgium. Every quarter, the product offers a variable coupon equal to the USD 3-month Libor, subject to a minimum coupon of 2.5% p.a. The distribution fee is 0.25% p.a. while other running charges of up to 0.75% p.a. apply, or 2.25% if the bonds are held until maturity.

Banca IMI launched the 100% capital protected Long Barrier Digital Certificates in Italy. The six-year product offers annual income of 7% providing the underlying S&P GSCI Gold ER Index is at or above its initial level on the valuation date. The subscription price includes a 3% placement fee for the distributor, management charges of 1.110% and other structuring costs of 0.05% which include, inter alia, the costs arising for using the underlying.

In the UK, Augere, a company which provides structured products for the IFA, intermediary and institutional marketplace, teamed up with Reyker (plan manager) and Commerzbank (counterparty bank) to launch Dual Index Auto Put Plan Issue 1. The six-year product is linked to the FTSE 100 and S&P 500 and offers 100% capital return at maturity if the best performing index has not risen by more than 40% on August 5, 2024. The product is targeted at professional and professionally advised retail investors and gets a listing at the London Stock Exchange.

NORTH AMERICA
Three hundred and seventy-eight structured products, split between Canada (26) and the US (352), had strike dates in North America.

NBC launched a seven-year Autocallable Contingent Income Note in Canada. The product pays a fixed coupon of 5.75% providing the underlying iShares S&P/TSX Capped Utilities Index ETF closes at or above 70% of its initial level on the observation date. CIBC World Markets acts as independent dealer and will receive a fee of up to C$0.15 per security sold.

Morgan Stanley Wealth Management is distributing Performance Leverage Upside Securities (Plus) in the US. The 15-month product is issued via HSBC and participates 300% in the rise of the Topix Index (Tokyo), subject to a maximum overall return of 123.9%. HSBC Securities, acting as agent for HSBC, will receive a fee of US$0.225 per US$10 stated principal amount and will pay Morgan Stanley Wealth Management a fixed sales commission of US$0.175 for each Plus they sell. The product sold US$4.6m and the estimated initial value on the pricing date was set at US$9.705 per security.

Also in the US, Wells Fargo issued Market Linked Securities linked to the iShares MSCI Brazil ETF. The product sold US$5.2m during the subscription period and an agent discount of US$18.25 per US$1,000 security applies. The estimated value of the securities is $955.84 per security.

LATIN AMERICA
Forty-nine structured products were launched in the Latam region. They were all targeted at retail investors in Mexico.

Monex issued a range accrual note linked to the USD/MXN currency pair. At maturity, the product offers a capital return of 100%, plus 8.95% p.a. prorated for the number of business days in the investment period when the currency pair is equal to or greater than 18.4, and equal to or lower than 19. The product sold MXN5m (US$268,060).

MIDDLE EAST & AFRICA
Standard Bank issued the five-year Protected Index Top 40 Note in South Africa. The capital protected note participates 105% in the positive performance of the FTSE/JSE Africa Top 40 index.

ASIA PACIFIC
Two hundred and forty-nine structured products struck in the Asia-Pacific region during the week. The products were split across four databases: China (five), Japan (35) South Korea (124) and Taiwan (85).

HSBC issued the six-month CNY Note S15 in China. The product will terminate early at the end of each month, paying a coupon of 7.8% p.a., if the worst performing of two exchange-traded funds - SPDR Gold Shares ETF and VanEck Vectors Gold Miners ETF - is at or above 102% of its initial level.

In Japan, Credit Suisse partnered with local securities firm Okachi, for the launch of EB M20200730, a two-year registered note linked to the share of Kawasaki Heavy Industries. The product pays a fixed quarterly coupon of 5.2% p.a. and will be redeemed early if the underlying share closes at or above 105% of its initial level on any quarterly valuation date.

Korea Investment & Securities and Nonghyup Life Insurance are distributing True DLB 96 in South Korea. The 15-year product pays a fixed coupon of 4.5% after the first year of investment, and thereafter a variable coupon (maximum 5%) equal to four times the spread between the one-year Korean won constant maturity swap rate (CMS) and the one-year Korean won cross-currency swap rate (CCS).

Far Eastern Securities launched a one-year memory autocallable range accrual note in Taiwan. The unlisted registered note is targeted at private banking investors and is linked to a basket of four stocks: Applied Materials, Regeneron Pharmaceuticals, Sanofi-Aventis and Tesla. The product is issued via Societe Generale.