Maturing products return $3.4bn to US market in July

US structured products providers will have $3.4bn of capital to reinvest on the basis of the 607 products maturing in July, of which the top 10 best-selling products account for US$920m of the total initial sales.

JP Morgan leads the sales volume of maturing products, with $713m across 113 products, followed by Bank of America ($497m), HSBC ($331m), Credit Suisse ($306m) and Barclays ($264m) – with Morgan Stanley having $260m worth of maturing products.

Four of the products maturing in July sold over $100m apiece, including two private banking deals issued by JPM, which sold $151.3m and $100.9m, respectively; while Credit Suisse’s Accelerated Return Notes sold $144.5m, and Deutsche Bank’s Knock-Out Notes - WTI Crude Oil racked up $126.5m of sales.

Credit Suisse’s Accelerated Return Notes was a one-year capital-protected growth capped call/enhanced tracker play linked to the S&P 500 index which promised to pay 300% of the performance of the underlying with a 10% cap; while Deutsche’s WTI Crude Oil Note is a one-year capital-at-risk protected tracker linked to the WTI crude oil which promised to pay the greater of 6.5% or 100% of the rise in the underlying over the investment period provided that the underlying had not fallen by more than 20.1% of its initial level.

In addition, there are 940 knockout products with early maturity dates in July which could add an extra $2.56bn in potential rollover opportunities in the US across 14 providers, although the volume may be lower due to investors unwinding their investments via the secondary market.

The average ticket size for all products maturing in July is $5.6m, while the average size of knockout products was $2.7m.