This week's wrap covers structured products with strike dates between September 2-8, 2018. Structures reviewed include a positive impact bond from Societe Generale in France, a private placement from Credit Agricole in Norway and a kick-out bond from Goldman Sachs in Ireland. In Canada, Scotiabank launched securities that participate 1000% in the Eurostoxx 50 while European indices were also in vogue in China where HSBC targeted the Cac 40 and Dax.

EUROPE
One hundred and seventy-seven structured products distributed across 15 different markets struck in Europe during the week.

Nagelmackers is distributing the Fixed to CMS Spread Coupon Note in Belgium. The 10-year steepener is issued via Goldman Sachs and pays a fixed coupon of 1.5% during the first five-years of investment.

"This product is intended for investors who expect the positive difference between the 30-year EUR CMS rate and the 5-year EUR CMS rate increases, or at least remains the same during the period 2024-2028," said Gianni Pauwels, product specialist life and structured products at Nagelmackers.

Milleis Banque, formerly known as Barclays France, introduced France Impact Durable. The eight-year product is eligible as a life insurance policy, and is linked to the Euronext SBF Top 80 EW Decrement 50 Points Index, which comprises the 80 largest companies in terms of free float market capitalisation of the SBF 120 Index. Societe Generale, the issuer, commits to holding positive impact finance in its books for an amount equivalent to the nominal invested, throughout the life of the product.

Handelsbanken issued Aktieindexobligation Asien 143AA in Sweden. The four-year, capital protected medium-term note participates 120% in the S&P Pan Asia Low Volatility Index, subject to six months backend averaging. The product is issued at 110% and a fee of 2% is added to the issue price.

In Norway, Garantum joined forces with Credit Agricole for the launch of Aktieindexobligation Global hållbarhet 85% Skydd NOK nr 3449. The certificate, which is 85% capital protected, is aimed at private banking investors and linked to the Solactive Global Ethical Low Vol EUR Index. A distribution commission of maximum 3.60%, embedded in the issue price, applies.

BCP Asset Management collaborated with Goldman Sachs for the launch of the Europe 100 Kick Out Bond in Ireland. The six-year product is linked to the iStoxx Europe Origin 100 Equal Weight Decrement 5% Index and sold €1.84m during the subscription period. The product gets a listing in Luxembourg and is targeted, among other, at individuals, pensions, charities and corporates who receive investment advice. A minimum investment of €30,000 applies and a total fee of 4.75% is built into the terms of the bond.

Dura Capital, a new structured product provider founded in March 2018, launched Defensive Autocall Plan 11 in the UK. The plan, which has a term of maximum seven-years, is linked to the FTSE 100 and intended for people who are cautious on equity market growth. The product is issued via Citigroup Global Markets and a one-off entry cost of £100 applies.

NORTH AMERICA
Seventy-two structured products, split between Canada (28) and the US (44), had strike dates in North America.

Scotiabank launched Series 3F of its BNS Capped Barrier Plus Notes in Canada. The five-year securities participate 1000% in the upside performance of the Eurostoxx 50, capped at an overall maximum return of 200%. The product is eligible, among other, as registered retirement savings plan (RRSP) and deferred profit sharing plan. There is no selling concession fee payable to the investment dealers, however, a fee of up to C$0.15 of the principal amount will be payable directly by the bank to Desjardins Securities for acting as the independent agent.

Citigroup Global Markets issued the 13-month Buffer Securities (17326YZJ8) in the US. The product participates 150% in the rise of iShares MSCI Emerging Markets ETF, capped at an overall return of 115%. The estimated value of the securities is expected to be at least US$963.5 per security, which will be less than the issue price. An underwriting fee of US$5 applies.

ASIA PACIFIC
Two hundred and fifty-two structured products struck in the Asia-Pacific region during the week. The products were split across four databases: China (60), Japan (13), South Korea (157) and Taiwan (22).

HSBC Bank issued CNY Note S16 in China. The six-month wealth management scheme is linked to a basket of two European indices: Cac 40 and Dax. The product will mature early, at the end of each month, if the worst performing index is at or above 102% of its strike level. At maturity, the minimum capital return is 90%.

Daishi Securities is distributing Digital M20210907 in Japan. The three-year product, which sold JPY640m (US$5.7m), is linked to the Nikkei 225 index and denominated in Australian dollars. Every quarter, the securities offer a coupon of 10% p.a. if the index closes at or above its initial level on the valuation date, or 2.5% p.a. otherwise. Municipality Finance provided the bond for this product while JP Morgan Chase acts as the derivatives counterparty.

In South Korea, Hana Daetoo Securities launched ELS 8829, a three-year equity-linked security linked to a basket comprising Hang Seng Index, Nikkei 225, and S&P 500. The product, which is also distributed via Kookmin Bank, will be redeemed early at the end of each semester, if the worst performing index is at or above 85%, 85%, 85%, 80% and 75%, respectively, of its initial level.

E Sun Bank teamed up with Societe Generale in Taiwan for the US dollar denominated Callable Note 037001003854. The product, which is targeted at private banking investors, has a term of five-years and pays a fixed coupon of 6.5% for the first year of investment. The following years the coupon is equal to 10 times the difference between the 10-year USD CMS and the 2-year USD CMS, subject to a maximum of 6.5% p.a.