This week's wrap covers products with strike dates between March 25-31, 2018. Structures reviewed include an Australian dollar-denominated note which was the result of a partnership between Deutsche Bank and Natixis in Belgium, a 90% protected, fund-linked bond from Deka Bank targeted at investors in Germany and Luxembourg, two certificates of deposit, from Morgan Stanley and JP Morgan, respectively, in the US, and a deferred purchase agreement from Societe Generale in Australia.
EUROPE
One hundred and forty-eight structured products structured products distributed across 13 different jurisdictions struck in Europe during the week.
Deutsche Bank collaborated with Natixis for the launch of Fund Opportunity Coupon 2023 II in Belgium. The five-year note is denominated in Australian dollars and pays a yearly coupon equal to 100% of the annualised performance of a basket of two funds (M&G Dynamic Allocation, DWS Concept Kaldemorgen), subject to a minimum coupon of 1.1% and a maximum coupon of 5%. The product is listed in Luxembourg and the aggregate nominal amount is AUD4.4m (EUR2.7m).
Equitim introduced Rendement Semestriel Mars 2018, a 10-year medium-term note linked to the Eurostoxx Select Dividend 30, in France. Every six months, if the index is at or above 80% of its initial level, the product, which is issued via BNP Paribas and listed on the Luxembourg Stock Exchange (€30m), offers a coupon of 3.25% for that semester. Otherwise no coupon is paid.
Deka Bank is distributing the 90% capital protected Tresor-Anleihe mit Cap 04/2024 to retail investors in Germany and Luxembourg. The six-year note participates 100% in the positive performance of the Deka-DividendenStrategie CF (A) fund, subject to an overall maximum capital return of 132.50%.
In Portugal, Banco Santander Totta, launched Deposito Zona Euro 5 Acoes, a two-year 100% capital protected deposit linked to a basket comprising the shares of Credit Agricole, Deutsche Telekom, ING, Renault and Siemens. The product uses the podium payoff structure whereby each quarter, if the levels of all shares in the basket are at or above 101% of their initial levels, a coupon equal to the six-month Euribor plus 0.60% is registered. Otherwise, the coupon is 0.015%.
NORTH AMERICA
One hundred and fifty-five structured products struck in North America during the period. The products included two products targeted at investors in Canada and 153 products aimed at the US market.
RBC launched the second tranche of the Principal Protected Canadian Large Cap Guaranteed Return Notes in Canada. The securities are linked to a basket of 10 Canadian stocks and pay a fixed annual coupon of 1%. If the performance of the underlying basket is positive at maturity, the product returns full capital plus 50% of the growth in the basket.
In the US, Morgan Stanley launched the seven-year Market-Linked CD linked to the Morgan Stanley Multi-Asset Portfolio (MAP) Trend Index. At maturity the product, which is wrapped as a certificate of deposit (type of debt instrument offered by US banks that are FDIC-insured) and uses the digital payoff structure, offers a capital return of 100% plus the greater of 13% and 100% in the rise of the index. The estimated initial value is set at 93.86%.
Another CD, also in the US, came in the shape of JP Morgan's Auto Callable. The 10-year deposit is linked to the performance of the JP Morgan Efficiente Plus DS 5 Index. The index, a member off the JP Morgan's family of Efficiente indices, selects from a basket of 19 exchange-traded funds (ETFs), one ETN and the JPMorgan Cash Index USD 3 Month. The estimated initial value of the product is 91.8% and a commission of 5% applies.
LATIN AMERICA and MIDDLE EAST & AFRICA
There were no structured products striking in both the Latam and Mea region this week.
ASIA PACIFIC
One hundred and six structured products struck in the Apac region during the week. The products where split across four databases: South Korea (53 products), Japan (49), China (two), Australia (two).
Societe Generale launched the USD Memory Autocall Fixed Coupon in Australia. The three-year security is linked to a basket comprising four international stocks. The product is wrapped as a deferred purchase agreement, which is an agreement entered into by the provider and investor whereby, upon maturity, investors may either accept physical delivery of the delivery assets on the settlement date or receive the sale proceeds in the form of cash equal to the final value of the investment. The delivery asset may take the form of shares or units in a fund. The product is issued via SG Option Europe.
United Overseas Bank issued the US dollar-denominated Note S1803 in China. The 1.5-year wealth management scheme is linked to the SPDR Eurostoxx 50 ETF. The product uses the shark fin payout and if the level of the underlying is at or above 110-140% of its initial level on any of the observation dates during the tenor, the product offers a capital return of 102%. Since August 2017 investors may request to redeem this type of product early, but the issuer reserves the right to accept or decline the request.
In Japan, Akatsuki Securities is distributing EB 20190924, a 1.5-year unlisted registered note linked to the share of Sumco. The product, which pays a fixed coupon of 6.4% per annum, is issued via Kommuninvest i Sverige, a Swedish local government funding agency. JP Morgan Securities is the derivatives manufacturer of the securities which sold JPY400m (US$3.8m).
Shinyoung Securities issued DLS 563 in South Korea. The derivatives-linked securities have a term of three-years and are linked to the performance of a basket comprising the Eurostoxx 50, iShares China Large-Cap ETF and S&P/ASX 200. The product can be redeemed at the end of each semester providing the level of the worst performing underlying is at or above a predetermined level of its initial level.