This week's wrap covers structured products with strike dates between August 5-11, 2018. Among the structures reviewed there were plenty of autocallables, including from Belfius in Belgium - linked to a European demography index - BNP Paribas in France and Goldman Sachs in Sweden. In Canada, a Bank of Montreal (BMO) note tracking a real estate index ETF was also subject to early redemption while JP Morgan, NH Investment, and Credit Suisse launched autocalls in Japan, South Korea and Taiwan, respectively.

EUROPE

One hundred and thirty-seven structured products distributed across 11 different markets struck in Europe during the week.

Belfius launched a 100% capital protected autocall note in Belgium. The product has a maximum term of 10-years and is linked to the iStoxx Europe Demography 50 Index, a sub-index derived from the Stoxx Europe 600 that selects stocks from sectors that will be impacted by demographic changes. The note is set to redeem early after four, six or eight years, in which case, it will payout 120%, 130% or 140%, respectively. A one-off distribution cost of 1.83% of the nominal value applies while running costs of the product are set at 0.53% pa.

i-Kapital is distributing Autocall Premium Aout 2018 in France. The product can be autocalled - from the end of the first year onwards - if the underlying Solactive France 40 Equal Weight NTR 5% AR Index did not fall by more than 4% on the quarterly valuation date. In that case the product offers 100% capital return plus a coupon of 1.5% per quarter elapsed. The product is eligible as a life-insurance contract and is listed on the Luxembourg Stock Exchange. BNP Paribas is the issuer and a commission of 1% applies.

In the Netherlands, BNP Paribas introduced a capped bonus certificate linked to the share of Heineken. The bank issued 4,000 securities - listed at Euronext Amsterdam - at a price of €88.84 per security. The barrier level is €71 while the bonus/cap level is set at €92. If the investor retains the product until maturity (June 28, 2019) a total cost of €114.34 applies, which translates in a 1.30% pa. reduction on the return.

Strukturinvest teamed up with Goldman Sachs for the launch of 1856 Autocall Nordisk Telekom Combo in Sweden. The certificate, which gets a listing on Nasdaq OMX Stockholm, is linked to an equally weighted basket composed of four shares: Telia, Tele2, Telenor and Elisa. The product is issued at par and a fee of 3% is added to the issue price.

NORTH AMERICA

Thirty-seven structured products, split between Canada (30) and the US (seven), had strike dates in North America.

Bank of Montreal launched series 840 of its autocallable principal at risk notes (F-Class) in Canada. The five-year securities provide contingent protection against a slight to moderate decline in the price of the units of the BMO Equal Weight Reits Index ETF which seeks to replicate the performance, net of expenses, of an equal weight Canadian Reits index, currently the Solactive Equal Weight Canada Reit Index.  The minimum investment is C$2,000.

Goldman Sachs Private Banking is distributing the capped buffered equity notes (48130UBG9) in the US. The product, which sold US$1.5m, has a duration of 19 months and participates 150% in the rise of the MSCI EAFE index, capped at a maximum return of 123%. JP Morgan is the issuer and the estimated value of the notes was set at US$998.80 per US$1,000 securities.

Also in the US, HSBC Bank issued the leveraged steepener notes (40435FH91). The product, which sold US$1m, will pay a fixed quarterly coupon of 4% pa. for the first year of investment. Every quarter thereafter, the product offers a coupon calculated as 7.25 times the difference between the 30-year USD CMS and the 2-year USD CMS. HSBC or its affiliates may pay varying underwriting discounts of up to 1% in connection with the distribution of the notes to other registered broker-dealers. The estimated initial value of the notes is US$978.70 per security.

MIDDLE EAST & AFRICA

Standard Bank launched the fully capital protected Index Top 40 Note in South Africa. The five-year product participates 105% in the upside performance of the FTSE/JSE Africa Top 40 Index which consists of the largest 40 companies ranked by investable market value in the FTSE/JSE All-Share Index.

ASIA PACIFIC

One-hundred and eighty-seven structured products struck in the Asia-Pacific region during the week. The products were split across four databases: China (one), Japan (10) South Korea (114) and Taiwan (55).

HSBC Bank issued CNY Note S60 in China. The two-year product, which is wrapped as a wealth management scheme, is linked to the share of Industrial and Commercial Bank of China. The product is putable.

Okasan Securities is distributing a six-month reverse convertible M20190207 linked to the share of Toto in Japan. The product, which sold JPY6.3m (US$56,500), offers a fixed quarterly coupon of 6.8% pa. The bond of this product is issued via Municipality Finance and JP Morgan Chase acts as the derivatives provider.

In South Korea, NH Investment & Securities issued NH DLS 3324, a three-year product linked to the performance of three commodities: Brent crude oil, WTI crude oil and copper. The securities will terminate at the end of each semester if the price of the worst performing commodity is at or above 85% of its strike level.

Bank SinoPac partnered with Credit Suisse for the launch of autocallable note 152000001283 in Taiwan. The six-month product, which is targeted at private banking clients, is denominated in US dollars and is linked to a basket of shares.