This week's wrap covers products with strike dates between April 8-14, 2018. Structures reviewed include a memory coupon note from BBVA in the UK, an autocall linked to an ESG index from BNP Paribas in Belgium and an uncapped certificate from Commerzbank in Norway. In the Americas, Morgan Stanley issued a 95% protected note linked to the Eurostoxx Select Dividend 30 in the US and Banamex introduced a dual currency note in Mexico while BBVA Continental distributed a structured fund in Peru.

EUROPE

One hundred and twenty structured products distributed across 10 different jurisdictions struck in Europe during the week.

Structured products specialist boutique Investment Design & Distribution (Idad) partnered with BBVA for the launch of Memory Income Autocall April 2018 in the UK. The medium-term note, which has a maximum term of six-years, provides a potential quarterly coupon of 1.50% depending on the performance of a basket comprising FTSE 100, Hang Seng Index, OMX Stockholm 30, and S&P/ASX 200 Index. There is also a USD version of the product which pays a quarterly coupon of 2%.

BPost Bank is distributing Autocall ESG Leaders 04/2023 in Belgium. The five-year, 90% capital protected note will be redeemed early after two, three or four years, providing the underlying Stoxx Europe ESG Leaders Select 30 EUR Index is at or above 110% of its initial level. The investment universe of the index consist of the companies that are part of the Stoxx Global 1800 Index and are assessed by Sustainalytics. The product is issued via the BNP Paribas Issuance vehicle. BNP Paribas acts as the guarantor.

Marigny Capital, a French financial company which offers advisory services to wealth managers and institutional investors, collaborated with Apicil Assurances and Societe Generale, to launch autocall standard securities linked to the Eurostoxx 50 in France. The product has a maximum term of 10-years and offers a capital return at maturity of 150% if the final level of the index is at or above 77.5%. The securities are listed on the Luxembourg Stock Exchange for an issued amount of €30m.

In Norway, Commerzbank issued Kjøpsopsjons- sertifikat knyttet til en kurv av ordinære aksjer, a three-year certificate linked to a basket of three telecommunication stocks (Telenor, Deutsche Telekom and Orange). During the subscription period, from March 21, 2018 until April 6, 2018, the securities are offered at an initial offer price of NOK10,850 (€1,128) per security (including a distribution fee of up to 0.72% p.a.).

NORTH AMERICA

Three structured products struck in North America during the period.

Morgan Stanley issued partial principal at risk securities (61768CR58) in the US. The three-year unlisted registered notes participate 210% in the upside performance of the Eurostoxx Select Dividend 30 index. If the performance of the index is negative, the securities participate 1:1 in the fall, subject to an overall minimum capital return of 95%. The estimated value on the pricing date is approximately $951.20 per security, or within $22.5 of that estimate.

LATIN AMERICA

There were 27 structured products striking in the Latam region this week.

BBVA Continental is distributing Oportunidad Especial Soles II in Peru. The one-year fully protected structured fund participates 100% in the rise of a basket comprising the shares of Adidas, Coca-Cola and Visa. However, due to the shark fin payout structure, if the basket rises by more than 9-10% of its initial level, the product offers 102% capital return.

Banamex, a subsidiary of Citigroup, issued a dual currency note in Mexico. The product, which has a term of just one week, is linked to the appreciation or depreciation of the US dollar relative to the Mexican peso. If the USD has appreciated against the MXN, the investor will receive 100% capital return plus a coupon of 47.78% p.a., paid in dollars. Otherwise, the product offers 100% capital return plus 47.78% p.a., paid in pesos at an exchange rate of 18.4636.

MIDDLE EAST & AFRICA

Three structured products had a strike date in the Mea region this week.

First International launched a dollar deposit linked to the S&P 500 in Israel. The capital protected product has a term of 1.5-year and offers 45% participation in the positive performance of the index. The bank is also distributing a shekel deposit linked to an equally weighted basket of 10 shares which offers minimum 100% capital return plus 35% of the average value of all share performances.

In South Africa, Standard Bank issued a capital protected MTN which participates 100% in the rise of the FTSE/JSE Africa Top 40. The index consists of the 40 largest South African companies ranked by investable market value in the FTSE/JSE All-Share Index.

ASIA PACIFIC

Thirty structured products struck in the Apac region during the week.

Samsung Securities issued DLS 2108 in South Korea. The three-year derivatives-linked securities are linked to one index (Eurostoxx 50) and two commodities (WTI and Brent crude oil). The product will be redeemed early at the end of each semester if the price of the worst performing underlying is at or above a predetermined level of its strike level.