brief stnt newsletter 2012168 1 (1)

7/31/2019 Brief STNT Newsletter 2012168 1 (1)

1/10

1 2 3 4 5 6 7 8 9 10

By AlAstAir MArsh

speca pupevece, e ff-ba-ance-ee enea e cene f efnanca c, ac-cun f e ageae f ucue

ne ae n fveea a nveeek aenave bank ce k.

sPV ave $5.83 bn fne ue eU.s. ea, 12.2 pecen f e $47.8 bn make, cmpae w 8.4 pecen ve e ea-eae pe-, accng aa cmpe b Bmbeg a excue ecue wee e amunf pncpa eune can va. ta e bgge ae f uance nce 19.1 pecen vee ame pe f 2007, even a e vea make a unk, Bmbeg aa w.

inve n sPV-ue ne benef b beng age pece fm a bank efaubecaue e wu pca ecape bankupc pceeng an caea back e

ecue, unke w na ne, wc ae unecue eb. rk a en n bankn e pa fve ea, w fve-ea ce efau wap f Bak Amrica Crp., eecn-bgge unewe f sPV-e uance ea, ugng b am fve me, 233.4 ba pn.

sme nve, w ae nw me awae f e ce k f ene, pefe bune fm a peca pupe en be expe e uneng ae ae an abank, a Thmas Imhasl, ea f ucue puc a Crit Siss AG pvaebankng vn n Zuc.

Eg f e 10 bgge ue f ucue ne ue e U.s. ave been wn-gae ea, Bmbeg aa w. Ms Istrs Sric cu ang n 15 fe w bgge bank an ecue fm n June 21, cng e gnfcan exp-ue e va an k f uze e neen capa make acve.

A bank can e up bankupc-eme peca pupe vece, fen n ax-favejucn uc a e Caman ian, iean an luxembug, ue ucuene. tpca e sPV w ue e mne ae fm eng e ecue pucae

caea, wc can be g ae gvenmen bn, a we a bn f nvemen-gae Eupean U.s. bank.

inve genea pa geae c wen bung ne fm sPV ae an bank,uc a f amnave an cuan fee, a Jsph Sh, a pane a e U.s.aw fm Schlt Rth & Zabl LLP n New yk.

s, e u be nuae fm e w f e fau f e pnng bank e-fau, a ng a e sPV e up en becme pa f e ene bankupceae, su a. tee wu be e ncue fm enng evave cnac ae sPV a aange w e bank, accng su.

inve n ucue ne ue b Lhma Brthrs Hligs Ic., wc fe

0

50

100

150

200

250

300

350

400

0

2

4

6

8

10

12

14

16

18

2008 2009 2010 2011 2012

CDS(basispoints)

SPV

sale

s(percent)

SPV Sales (as % of global)

Bank of America, 5-yr. CDS average

Deutsche Bank, 5-yr. CDS average

Source: Bloomberg LP

SPVs Grab Note Market Share as Bank Risk Rises

All figures through

Aug. 15 of each year.

SPVs Bs Mr Shr n Bn Rs Cncrns

* According to data compiled by Bloomberg from SEC filings.** Based on data submitted to Bloomberg by banks. Excludesvariable-principal redemption, reverse and synthetic convert-

ibles. Global includes Euromarket issues from all nations anddomestic European notes. Excludes SEC registered issues.

VoluMeS

APPLe IS MoST PoP-uLAR u.S. undeRLy-InG foR ReveRSeConveRTIBLeS. tecmpan e fm N.7 a ea a cka uge an gwnme vae. Page 2.

InveSToRS BeT on PeSo GAInS. UBs me an $170 mn f ne a

pf f e Mexcan cuenc e agane U.s. a. Page 3.

IndIAn noTe SALeS PLunGe on dIS-CLoSuRe RuLeS. New eguan a m k n e make, an fangck, ave epee ae. Page 3.

deConSTRuCTInG THe deAL. Webeak wn an hsBC eveage ne n pa an wk u cangng vauence uance. Page 5.

InTeRvIew. Bae Beman f Mn& Fee ak abu en n excange-ae ne, uc a gwng cmpex.

Page 7.

strUCtUrEd

NotEs

WAtCh

u.S. StRuCtuRed NoteSVoluMeS*

aS ofaug. 10

1 yeaR ago

Last Week (Aug. 6-10) $307.5 million $1.23 billion

First Quarter $11.3 bill ion $14.8 bil lion

Second Quarter $9.8 bil lion $10.6 bil lion

Year To Date $24.1 bill ion $29.9 bil lion

YTD Equity $15 billion $14 billion

YTD Rates $3.69 billion $5.49 billion

YTD Commodities $1.57 billion $2.92 billion

gloBal Rate liNkedNoteS**

aS ofaug. 15

1 yeaR ago

Last Week (Aug. 9-15) $637 million $1.51 billion

First Quarter $23.5 billion $29.8 bill ion

Second Quarter $17.2 bil lion $34.5 bil lion

Year To Date $48 billion $76.5 billion

YTD Interest Rate Linked $19.2 billion $36.3 billion

YTD Credit Linked $25.2 billion $26.8 billion

YTD Infation Linked $1.17 billion $6.74 billion

BRIEF

08.16.12Structured

Noteswww.bloombergbries.com

cont nued on next pag


2/10

1 2 3 4 5 6 7 8 9 10

Bns S Ns t app s Sc, V RsBy MAtt roBiNsoN

Appl Ic. a becme e m cmmn nke cmpan f evee cnvebe aa ang ae pce an ng expece va ave be eman f e newe makng e em me aacve.

Bank ave $149.4 mn f e ecue e e w age cmpan b ma-ke vaue ea, me an ee me e a f frprt-McMRa Cppr & GlIc., e ecn-m ue ck, accng aa cmpe b Bmbeg. Appe wa eeven-m cmmn uneng ae f e ecue ung e ea-eae pe.

te age make f abe cmpue a en 56 pecen ea, afe ganng 26pecen a ea. hge va n Appe a epe nceae cupn n eveecnvebe, g-eng bank bn a cnve n ck f a cmpan ae pcepumme, accng Jh Tssar, en vce peen a JvB fiacial GrpLLC n Bca ran, Fa. ta, ang w e cmpan name ecgnn, a b-ee ae, e a.

Anme u can ge a name ke Appe u ee, an eae e, tea a n a

eepne nevew.impe va, wc ncae expece pce wng, aveage 33.7 n 2012 f12-mn pn ce Appe ae, up fm 31.8 n e ea-eae pe,Bmbeg aa w. revee cnvebe e Appe ea a an aveage mau- f abu 11 mn.

inceae va b e vaue f evave embee n e ecue, awngue ceae me aacve ne.

U.s. ae f evee cnvebe ecne $173.5 mn a mn, e weeve nce a ea e begnnng f 2010, Bmbeg aa w. iuance a ppence e Fnanca inu regua Au, e nu-backe egua, eeaean nve ae n Ju 2011, avng bue be wa f aveng uggeng epuc ae afe an uabe f nve eekng g e.

ovea ae ave faen even a nceae va awe ue ffe ge-eng ne. te ViX, a e Ccag Ba opn Excange Va inex knwn, aveage 18.9 n e f even mn ea, cmpae w 18.2 a ea.

te gauge meaue e c f pn pec agan ecne n e sana &P 500 inex.

NewS

* Rating is for the finance unit that issues most structured notes.

gloBal iSSueR S&P Moody'S

DZ Bank AA- A1

LBBW NA A3

Deutsche Bank A+ A2

UBS A A2

Societe Generale A A2

Barclays* A+ A2

UniCredit* A A3

Crit Ratigs Tp Issrs

u.S. iSSueR S&P Moody'S

Bank o America A- Baa2

JPMorgan A A2

Morgan Stanley A- Baa1

Goldman Sachs A- A3

Citigroup A- Baa2

General Electric* AA+ A1

Royal Bank o Canada AA- Aa3

Blmbrg Bri Strctr nts

nslttr Ted Merzexcti eitr [email protected]

212-617-2309

Blmbrg ns Robert BurgessMaagig eitr [email protected]

212-617-2945

Strctr nts Richard Bedardnslttr eitr [email protected]

212-617-8761

Rprtrs Matt [email protected]

Alastair [email protected]+44-203-525-8767

Kevin [email protected]

nslttr Nick FerrisBsiss Maagr [email protected]

212-617-6975

Artisig [email protected]

212-617-6975

Rprits & Lori HustedPrmissis [email protected]

717-505-9701

To subscribe via the Bloomberg Terminal type BRIEF or on the web at www.bloombergbriefs.com.

2012 Bloomberg LP. All rights reserved.

This newsletter and its contents may not beforwarded or redistributed without the prior consentof Bloomberg. Please contact our reprints andpermissions group listed above for more information.

Crr Mvs? Prmns?Send announcements to [email protected]

e bgge bankupc n U.s. n sepembe 2008, w eceve n 20 cenn e a, accng emae fm Chris vr, funng pane f Nape,Fa-bae aw fm vr Hal.

dtsch Bak AG e eang unewe f ne b sPV ea, aangng$1.68 bn f ea, Bmbeg aa w. te age ecu bue wa a 163mn eu ($200 mn) ffeng b luxembug-ncpae Glbal B Sris XIvSA, a vece ceae ue a muc a 400 mn eu f ecue ne e cn-an mau wap ae an an iaan veegn bn, accng an ffeng cumen.

Bank f Ameca unewe $1.61 bn f ne, 75 pecen f wc wee ue bCaman ian-ncpae Azsa Lt., Bmbeg aa w. te peca pupeen ue $1.04 bn f ce-nke ne e e eb f Japanee cmpaneuc a Sharp Crp. an Hitachi Lt.

frak Hartma, a deuce Bank pkeman n lnn, an Ar T, a Bankf Ameca pkeman, ecne cmmen.

Ameam-ncpae eLM Bv, an sPV affae w uBS AG, a $785.6 m-n ce-nke ne n Jan. 23 a wa e age ue b an sPV ea. Jawar, a pkewman f e bank n lnn, ecne cmmen.

Gba ae f ucue ne n Ju fe e we eve nce decembe, ang$4.76 bn n Aa an Eupe, Bmbeg aa w.

spvs boost...

08.16.12 www.bloombergbriefs.com Bloomberg Brief | Structured Notes 2

contnued rom prevous page


3/10

1 2 3 4 5 6 7 8 9 10

Istrs B nts That Bt Mxica Ps t Bat dllar

uBS AG 94 ucue nence e begnnng f Ju a pfu e Mexcan pe appecaeagan e a ve a ee-mnpe.

te sw bank ae me an $170mn fm e ecue n e pa xweek, a Ar Mr, managngec f e ene fegn excangean pecu mea ucue unun n Zuc.

inve n Eupe, e U.s. an lanAmeca eekng bea eun fmmne make fun bug e ne

benef fm a ebun n e pe,accng Mee. te cuenc gane10 pecen agan e geenback nceng a ee-ea w a e begnnngf June.

te maj f UBs ne ae -cae evee cnvebe, wc aeecue a eeem n ee a pe epenng n e pefmancef e cuence. F ne enmna-e n e U.s. cuenc, a a amunw be pa a mau f e pe ap-pecae, we a pe amun w bepa f en.

te ne pa cupn a g a

10 pecen annua, 2.5 pecen fe w ee-mn en, acc-ng aa cmpe b Bmbeg. tacmpae w a 0.22 pecen aveagene-ea eun avaabe fm eu gv-enmen mne make fun, aa fme inuna Mne Make FunAcan pube n Ju 13 w.

te pe weakene we nceMac 2009 n June 1, ppng 14.5997 pe a, a cncen munea Geece wu abann e euan a gw n e U.s., e ena-n f abu 80 pecen f Mexcexp, wa wng.

te weakenng uae e pege va cmpae w peeae an a wenng f Mexcecnm, a Aljar Cara,ea f la n Amecan fegn ex-cange aeg a Bac Bilba viz-

caa Argtaria SA n New yk.te pe a ne f e ge c-

ean gba make k amngemegng make cuence, makng ve eabe wen make mve mek n, Cuaa a.

te cuenc benefe fm a ecena n k ae afe Eupean CenaBank Peen Mari draghi pmen Ju 26 waeve ake peeve e eu. te excange aewa a w a 13.1467 a.

Crit Agricl Crprat & Ist-mt Bak, dtsch Bak AG, HSBCHligs Plc an Scit GralSA a ne ea e ecuenc pa, Bmbeg aa w.

Alastair Marsh

Iia nt Sals drp 73% disclsr Rls

sucue ne ae n ina ppea me an wce e gba pace ne f af afe ue bake a neweguan ame a mng k annve ave ecue nke fang ck.

offeng ecne 73 pecen 5.88bn upee ($106 mn) fm ef af f a ea, e we n aea w ea, accng e m

ecen fgue fm e secue anExcange Ba f ina. Wweae f e ne fe 31 pecen $61.8 bn n e ame pe, acc-ng aa cmpe b Bmbeg.

iuance a we wn becaueue wee gappng w e new e-quemen, a Rajsh Ir, Mumba-bae ea f puc an eeaca Ktak walth Maagmt, wcpve fnanca avce f 30 pecenf ina 100 ce fame, acc-ng webe. Pvae bank annemeae a ave bugee fucue ne w fee e peue.sae wee g bee n Ju anAugu, e a.

ina nuce ue f ucuene n Nvembe, jnng egua- gba n nceang cun fcmpex nvemen afe bn f

a f e fm evave angung e fnanca c. W me

an 90 pecen f e ecue n inanke eque, wea pepe wae e bgge bue f e puca unne e make afe ebencmak BsE ina senve inex fck ppe 16 pecen fm peakn 2010.

te secue an Excange Ba fina n Nv. 1 began equng ee pub a vauan f e neug nepenen agence anmake nve awae a e bema n be ege an e pncpa nawa pece.

iue ncung e inan un f

Mrga Stal an Crit SissGrp AG ave pube vauana ae avaabe n e webe f Cri-sil Lt., wc ane abu 95 pecenf ucue-ne vauan.

te na pae wa que caeng-ng a n agenc a e weewa vaue ee ucue, an u-e pen evea mn wkng ume, a Pratk Pat, ec fpuc an evce n Mumba aRBS Priat Bakig. tee beena gnfcan beak n e mmenum ne ucue puc make.

i ma be n e nee f nve keep nn-pncpa pece pucu f eac f a bu e m -pcae nve, n. Harihara, apkeman a e make egua, ab e-ma. te numbe f uance anuanng vaue f ucue nea gne wn n accun f ngenegua equemen.

A muc a 95 pecen f e uc-ue ne n ina ae nke eque, accng Amit Gpta,ec f nuna ae a BarclasCapital n Mumba.

Becaue e equ make n e a

w fu ea an ne ve we,nve appee f equ-nke uc-ue ne a cme wn que a-ca, a Amitabh Mhat, ea ffxe ncme a Rliac Capital Lt.

RouNduP

Follow Richard Bedard on Twitter for regular updates and additional insights @rnbedard


cont nued on next pag
https://twitter.com/#!/rnbedardhttps://twitter.com/#!/rnbedard


4/10

1 2 3 4 5 6 7 8 9 10

hg ne-w nvua, w pcaave $1 mn me f nveabe

ae, bu a ea 60 pecen f inaucue ne, accng Man.te numbe f mnae ue

n ina e 162,000 a ea fm134,000 n 2010, e x-ge nAa, accng Th Bst C-sltig Grp 2012 Gba Weaep. te cun a a 278 ue- w me an $100 mn, ua-g ne-w nvua, up fm241 n 2010, accng e ep.

tee cean a f aeneman f ucue puc fmm g ne-w cen, arBs Pan. te puc n ina can

ffe nve a muc a 350 bapn me an bn, e a.

ina nuce e new ue eeea afe Lhma Brthrs HligsIc. cape caue mu-bn ae gba.

Citigrp Ic. inan un a beguncmpenang nve afe an emp-ee n wea-managemen vnaege efaue em f 3 bnupee nvee ve 15 mn, eU.s. bank a n Janua 2011.

tee an veang f e nnve mn fm aggeve eave exc ucue pucung e bu un up 2007, SapilPaar, cef nvemen ffce a KarPriat walth, an ave g ne-w cen n ina, a b e-ma.te aue f egua cauu.

Jun Yang and Ruth David

vlatilit Bts Ris t Rcr asvIX falls t fi-yar L

inve ae png n ecue agan u equ va nceae,a bea be n ck a wa appua wen e sana & P 500

inex cmbe abve 1,400 n Mac.ouanng ae jumpe a ec

f e ee m-ue excange-a-e ecue a pf fm vagan n U.s. ck, accng aacmpe b Bmbeg. te CcagBa opn Excange Vainex, knwn a e ViX, ebune 8.4pecen 14.85 Aug. 14 afe ucng we eve nce June 2007.

deman f pecn agan e

a nceae afe me an $1.3 -n a been ae Amecan ae

vaue nce e s&P 500 eace afve-mn w n June 1. Equ vumeeace e we eve nce 2008excung a week a vaca-nng ae awae U.s. Feeareeve Caman B S. Brakpeec a e Kana C cnfeence nJackn he, Wmng, an e Eu-pean Cena Bank meeng nex mn.

We ae cean n e umme -um b vume an va avebeen exeme w, Ar Grl,a en managng ec a samf,Cnneccu-bae Acr driatisMaagmt Crp., wc manage

me an $500 mn n va a-e, a. Man f e mac k ae w u. We upec a vaw mve back up.

sae uanng f Baca PcPa s&P 500 ViX s-tem FuueEtN, e m ae f e ecuee va, jumpe xf ea 142 mn Aug. 14, aa cmpe

b Bmbeg w. te numbe fPsae Ua ViX s-tem Fuue

ae nceae am 50 mnfm 100,000 a e en f decembe,an e Vecsae da 2x ViXs tem EtN ae 80 mnfm 5.1 mn.

ViX fuue w ae ae bengva wn a w. te x-mn cnac eace e geeve nce Mac veu e vanex n Aug. 13, aa cmpe bBmbeg w. A e ame me, enumbe f uanng ViX ca bue gauge veu pu e jumpe 2.08--1 n Aug. 10 afe ucng 2.2n Ju 30, a ne-ea g, accng

e aa.i umme an nb wan wn

va, Ptr Ccchii, gba eaf nuna equ evave a Newyk-bae Catr fitzgral LP, a.te macecnmc backp cm-pee vegen fm e ViX an acnnec ke eve.

Nikolaj Gammeltoft and Cecile Vannucc

te make capazan f U.s. excange-ae ne a gwn 15 pecen ea. teequ ae ca amng e fae-gwng, ugng 36 pecen $7.16 bn fm $5.28bn. deuce Bank AG dg f e dw e e gane n caeg, jumpng $18.8 mn n ze fm $5.7 mn. Cmm-nke EtN ppe 7.2 pecen, $6.21bn fm $6.69 bn. te bgge e n ca ncue EtN e aumnum, pa-aum an ea.

6.69

0.32

5.28

0.35

1.94

0.17

6.21

0.20

7.16

0.45

2.63

0.250

1

2

3

4

5

6

7

8

Commodity Currency Equity Rates Volatility Other

Billionsofdollars

Market cap, Dec. 31

Market cap, Aug. 13


Equity-Tied and Volatility Notes Are Fastest-Growing

A Barclays ETN

tied to lead lost

77% of its market

cap, the worst

commodity

performer.

The "Dogs of the Dow" ETN was the

cat's meow for Deutsche Bank: it

more than tripled in size, leading all

equities.

etN innc

Roundup...


contnued rom prevous page


5/10

1 2 3 4 5 6 7 8 9 10

pncpa cu be .(2) Ce (ue efau): te ne

unecue eb. Ce k mpe fme vaue f e ue cpae bn

ung z-pea vek-fee ae. te z-pea f 18-mn

eb f hsBC h-ng wa 157 bapn n e pcngae. Z-pea fma-mau ebf e ueange fm 31.3ba pn f RalBak Caaa

210.3 f Bak Amrica Crp. hgez-pea mp ge k f ue efauan we e make vaue f e ne.

(3) lqu: sucue puc ae

nene be e un mau, eecna make ma. in me anee mn nce uance, nea ae nce n June 14, bae naa fm e Fnanca inu regua- Au tace em.

te acua vaue f eac $1,000 ne,

a uance an n en-f-mn aence en, bken wn n e abebew, ung Bmbeg anac. Vauef evave ncae e fa makevaue f e embee evave. Mepce efec e vaue f e eva-ve, an ce-ajue me pcea ce k. Exena eve ae pcepve b e uce, n caeFnanca tme ineacve daa.

Chandra Khandrika does valuations of structurednotes for Bloomberg clients. He can be reached

at [email protected]

ye enancemen ne pve nve- expue e gan f an equnex, meme ung eveage, w e-un cappe an e buffee. in a wnee ae envnmen, ee ecuefen k aacve.

on Ap 2, HSBC Hligs Plc pce$103,000 f -cae Buffee AcceeaeMake Pacpan secue (AMPs).inve eceve wce e gan n esana & P 500 inex, up a capf 12.5 pecen. if e nex e 20 pe-cen, e eun n 12.5 pecen. on ewne, e ne pec agan ef up 10 pecen. if e s&P 500 p

60 pecen, e 50 pecen.t ne paff can be epcae u-

ng ee Eupean-e pn n euneng (f me ea, ee ca).

on e upe:lng n w ca pn a e na

eve f e s&P 500 an n w capn a e eve f e cap.

on e wne:s n ne pu pn a e eve

wee e buffe pecn ceae.inve n e

ne ae expe ee ffeen k.

(1) Make (un-eng ae):Pefmance f ene epen n es&P 500 eunan va. on eupe, e pef-mance eembe abu ca peaaeg. on e wne, nvepacpan ben a 10 pecen pmuae a nake pu pn. t angeu; a gnfcan pn f e

HSBC uss lvr n Cp r N t h S&P 500

deCoNStRuCtiNg tHe deal ANAlysis By ChANdrA KhANdriKA, dEriVAtiVEs PriCiNG sPECiAlist

-80

-60

-40

-20

0

20

40

60

567 767 967 1,167 1,367 1,567 1,767 1,967

Return(%)

Level of S&P 500

Underlying (S&P 500)

Note


Payout Profile of HSBC Note

10% buffer

protects on

losses.

2x leverage

boosts gains.

12.5% cap limits

returns.

For technical breakdown of

note, click into circles,

starting here:

Interactive features

not viewable on IOS

devices.

THe noTeBmbeg id: rd0650138Ae ca: Equ

Pncpa pece: Niue: hsBC UsA inc. (a un f hsBChng Pc)Uneng: s&P 500 (sPX)Mau: 18 mnUpe pacpan: 200% (12.5% cap)dwne pacpan: 100% (10% buffe)tae dae: Ap 2, 2012

val th ntdate 4/2/12 4/30/12 5/31/12 6/29/12 7/31/12

Spot Price (S&P 500) 1,419.04 1,397.91 1,310.33 1,362.16 1,379.32

Embedded Derivative Value -$6.92 -$15.43 -$54.22 -$25.02 -$16.04

Model Price $993.08 $984.57 $945.78 $974.98 $983.96

Credit Adjusted Discount Factor 0.9661 0.9706 0.9771 0.9806 0.9844

Model Price (Credit Adjusted) $959.41 $955.60 $924.09 $956.03 $968.61

External Price source (FTID) $973.70 $925.90 $952.10 $963.00



6/10

1 2 3 4 5 6 7 8 9 10

SeC-RegiSteRed NoteS

Glma Sachs Grp Ic. $80 mn f 10-ea, caabe ep-upne n Aug. 9, e bank age ae-e ffeng ea, accng aacmpe b Bmbeg. te bn e3 pecen f e f ee ea befeng 4 pecen, en nceae eeme me 7.5 pecen f n cae, ac-cng a ppecu fe w e U.s.secue an Excange Cmmn.te New yk-bae bank an incap-a inc. bue e ne f a 2.69pecen fee.BBG id EJ3101353

Ral Bak Caaa $40.1 m-n f ne-ea, au-caabe ne e Appl Ic. n Aug. 10, e age ffengfm e bank nce Ap 26, Bmbegaa w. Eac quae e ecue

w pa a 12.75 annuaze cupn f ew age cmpan b make vaue

en ecne b me an 20 pecen,an w be aumaca cae f eae excee e na eve, accng a ppecu fe w e sEC. teMnea-bae cmpan bue ene f a 1.5 pecen cmmn.BBG id rd2370529

Bak na Sctia ue $14.6mn f 19-mn ne e e MSCIeAfe Ix n Aug. 7, e age ffengf e bank nce June 18, Bmbegaa w. te ne e an gan fe nex, wc ack nenana equ-e, cappe a 10 pecen, w nve

a k f ng e pncpa, accng a ppecu fe w e sEC. tetn-bae bank bue e nef a 0.25 pecen cmmn.BBG id rd2397217

Glma Sachs Grp Ic. $13.9 mn f 13-mn ne e

e S&P 500 Ix n Aug. 6, Bmbegaa w. te ecue e 7 pecenf e nex en fa b me an 15pecen, w nve a k f nge pncpa f p fue, acc-ng a ppecu fe w e sEC.te New yk-bae bank bue ene f a 0.85 pecen cmmn.BBG id EJ3197054

Bak na Sctia $11.1 m-n f 18-mn ne e e MSCIeAfe Ix n Aug. 6. te ecuee ne an a af me e gan ne gauge e nenana eque,

w a cap f 21.8 pecen, accng a ppecu fe w e sEC. tebank bue e ne f a 0.25pecen cmmn.BBG id rd2398116

NoteS Sold

By MAtt roBiNsoN

Gral elctric C. $125 mn f fxe--fang aeecue mn, bgge U.s. ucue ne ae nce

eunng e make n decembe.te w age je-engne make, wc a e 2012 w

me cpae eb ue an an U.s. cmpan, a ue$675 mn f U.s. ucue ne nce en, accng aacmpe b Bmbeg.

Pepe ke e name an ae cmfabe w , Tm Balcmf 1650 Wea Managemen n Bca ran, Fa, a n aeepne nevew. Becaue f a e eane k aunbank, make a f ene.

Ms Istrs Sric wngae 15 f e w bg-ge bank an ecue fm n June 21, ncung e 11 ageue f U.s. ucue ne, cng e gnfcan expue e va an k f uze e neen capa makeacve. sana & P ae GE a e p U.s. ue f e

ecue a AA+, e ecn-ge gae. M ankng Aa3, e fu-ge, afe weng GE ne eve n Ap fw-

ng a evn e ang cmpan gang meg.A pa f u vefe funng aeg, we ue ffeen

pe f ne, Rssll wilkrs, a pkeman f GE, a n

an e-ma aemen. t mee nve eman, we ave ffeeucue ne ea.

GE ffeng accun f abu 3 pecen f e $23.5 bn nU.s. ucue ne ae n 2012, wc ae a e we evence a ea e begnnng f 2010, Bmbeg aa w.

Ge Capital Crp., e fnance am f e Fafe, Cnneccu-bae cmpan, ue e ee-ea, fxe--fang ae nen Aug. 2. te bn e 1.125 pecen f e f ea, enwc e ee-mn lnn nebank ffee ae pu0.525 pecen w a mnmum cupn f 0.875 pecen, acc-ng a ppecu fe w e U.s. secue an ExcangeCmmn. Barclas Plc bue e ecue f a 0.70pecen cmmn.

te cmpan a a x -cae ep-up caabe ffe-

ng n e U.s. nce decembe, Bmbeg aa w. te ecu-e pa ge nee ae f e aen cae afe a e pe.

featuRed Note

gnr ecrc Ss is lrs N Snc dcmbr

BRIEFFor the full list of titles visit www.bloombergbriefs.com or BRIEF on your Bloomberg terminal

Bloomberg Brief publishes 17 groundbreaking daily and weekly newsletters.



7/10

1 2 3 4 5 6 7 8 9 10

Q: H i gt il i x-chag-tra ts?

A: i wa pevu a suvan & Cm-we, wee i wke n ucuepuc f w fequen ue. F nebank, i ave n a f e EtN fm

2008 2012.

Q: what is it that attractiabt eTns?

A: i facnang w ue ae cn-an cmng up w new ucue.Wen i ae w EtN, e weeeave mpe, w n eveage eefeaue. EtN ucue ae muc mecmpex nw. i ave make ue a anpacua ucue wn e eevanegua equemen, ncung eNysE ng equemen an reguanM eef gane n e 2006 Pa sECn-acn ee [te n-acn eea a Baca Pa excange-aene, wc wee e f EtN ffee ne U.s. make, n vae sEC ue].

Q: Th fiacial Istr RglatrAthrit rctl rlas a tsaig that mst eTns ar sigr istittial istrs, t r thrtail markt. d agr ith thisassssmt?

A: i nk e, becaue ee ae mancmpex ne. in u m ecen EtNinegence ca, EtN e e ViXwee e m eav ae. tee n

wa mm an pp u be bung ava ne. i nk a ea nvema be akng muc cmf fm efac a EtN ae e n e New yksck Excange.

tee ae n e kn f ecue a

ne wu bu an pace n a afe epbx f 30 ea. Pucae f vaEtN ae man ege fun managew em f a a w.

Q: Has it bcm harr t mak srthat eTn strctrs it ithi rglatrrqirmts, that th ar mrcmplx?

A: N w epec e NysE Aca -ng ue, wc ae agfwa. teucue ee fa wn e NysE Acaue en. i ge a b me cm-pex wen ng magne wa e sEC

mg nk f a new EtN feaue, a cm-pae e feaue f e gna PaEtN a wee evewe b e sEC.

Q: exactl h ha th bcm mrcmplx?

A: inea f an EtN eun beng baen e ffeence beween e na evef e uneng ae a e ae aean e fna eve f e uneng aea e ae f eempn a mau,EtN a ue eveage, a mnee an cmpunng n ave aag-ne eun fmua. Newe EtNa cage a eempn fee.

Q: Has th SeC r iitiall rjcta eTn b il i?

A: N. ive neve wke n an EtN awu be cnee nve an unque,wc wu eque sEC evew.

Q: Cl talk abt strctrs thatl prbabl b rjct?

A: one cen uggee an EtN nke a ppe nex f fuue n equecue. oe an e ViX inex, eNysE Aca ue n aw an EtN be nke an nex f equ fuue.

Q: what is apprpriat r th rtailistr?

A: sme mpe ne wee e paufmua e n ue eveage an ee,an a ae nke an nex aea e can unean.

Q: what ar sm rglatr rls r-garig eTns that imprmt?

A: te U.s. secue an ExcangeCmmn kng n e ecentViX pce fucuan, an im ve ne-ee ea e sEC epne.

Q: what ar sm trs si eTns?

A: te genea en e ave f-we EtF. Wen EtN came u, ewee ve mpe. A EtF evepeeveage an ee feaue, ue awa ee wee ppua an a, Wn we a? te en fmmpe cmpcae.

Q: d thik eTn strctrs ill b-cm mr cmplx, ith strc-tr ts sals i gral allig?

A: te cen w i wk w ae veceave an ngenu; e ae awannvang.

VoiCeS

Brmn Mrrsn & frsr n h grn Cmpx etNs

Bral Brma, f cune f Mrris& frstr n New yk, ak abu wenexcange-ae ne ae uabe f n-vua nve an puc en. he wanevewe n New yk b eepne ane-ma b Kevn dugan.

Experience:Cahill Gordon & Reindel LLP, Sidley Austin LLP, Sullivan & Cromwell LLP.

Education: Rochester Institute of Technology, bachelors degree in photography;

Fordham University School of Law, J.D.

Family:Married to Barbara for 27 years, with two sons, 22 and 24, and a daughter, 19.

Hobbies: Swimming, hiking, bicycling, gardening. Former professional photogra-

pher. Just read the latest installment of Robert Caros biography of Lyndon Johnson.

Find Warrants and Certificates with our new CERT GO



8/10

1 2 3 4 5 6 7 8 9 10

SeC-RegiSteRedStRuCtuRed Note iSSueRS*

2012 yeaR-to-date

RaNkMaRketSHaRe

VoluMeuSd (MlN)

dealCouNt

Bank o America 1 14.0% 3,362.3 172

Goldman Sachs 2 12.0% 2,875.3 307

Barclays 3 11.1% 2,659.3 443

HSBC 4 10.9% 2,630.1 373

JPMorgan 5 10.3% 2,468.8 592

UBS 6 9.9% 2,371.2 1,558

Morgan Stanley 7 7.3% 1,750.2 226

RBC 8 6.2% 1,500.1 463

Deutsche Bank 9 4.8% 1,156.4 211

Credit Suisse 10 3.6% 858.0 213

Citigroup 11 2.8% 662.5 86

General Electric 12 2.2% 525.0 5

SEK 13 1.4% 348.1 17

Wells Fargo 14 1.4% 334.7 57

Scotiabank 15 0.7% 178.4 26

BMO 16 0.7% 160.7 249

Lloyds 17 0.4% 90.0 6

SunTrust 18 0.2% 51.0 5

Westpac 19 0.2% 41.5 2

Toyota 20 0.1% 30.0 2

RBS 21 0.0% 1.9 3

total (Jn. 1 a. 10, 2012) 100.0% 24,055.6 5,016


2012 yeaR-to-date

RaNkMaRketSHaRe

VoluMeuSd (MlN)

dealCouNt

Bank o America 1 20.1% 740.7 44

Goldman Sachs 2 14.9% 550.4 18

General Electric 3 14.2% 525.0 5

Barclays 4 13.6% 502.6 49

Morgan Stanley 5 11.5% 425.6 38

Citigroup 6 5.5% 204.3 21

RBC 7 4.6% 168.9 25

JPMorgan 8 4.3% 157.2 12

Wells Fargo 9 2.6% 96.7 8

Lloyds 10 2.0% 74.0 4

HSBC 11 1.8% 66.8 13

SunTrust 12 1.4% 51.0 5

UBS 13 1.2% 45.0 13

Westpac 14 1.1% 41.5 2

Toyota 15 0.8% 30.0 2

Scotiabank 16 0.2% 8.0 2

Deutsche Bank 17 0.0% 1.6 2

BMO 18 0.0% 0.5 2

total (Jn. 1 a. 10, 2012) 100.0% 3,689.8 265


2012 yeaR-to-date

RaNkMaRketSHaRe

VoluMeuSd (MlN)

dealCouNt

RBC 1 25.8% 408.2 271

UBS 2 20.6% 325.5 744

JPMorgan 3 12.9% 204.1 179

HSBC 4 11.5% 181.8 30

Barclays 5 10.9% 171.6 133


BMO 7 4.0% 63.2 221

Citigroup 8 3.0% 46.9 6

Credit Suisse 9 2.2% 34.9 19

Bank o America 10 1.9% 30.0 1


total (Jn. 1 a. 10, 2012) 100.0% 1,580.8 1,646


2012 yeaR-to-date

RaNkMaRketSHaRe

VoluMeuSd (MlN)

dealCouNt

Barclays 1 20.0% 315.0 55

Bank o America 2 18.8% 295.1 26

SEK 3 13.4% 210.1 11


Goldman Sachs 5 10.3% 162.2 13

UBS 6 8.7% 137.0 25

HSBC 7 8.3% 130.9 8


JPMorgan 9 1.2% 19.1 6

RBC 10 1.1% 17.8 3

Credit Suisse 11 1.1% 16.7 2

Wells Fargo 12 0.5% 8.1 3

Citigroup 13 0.1% 2.0 1

BMO 14 0.0% 0.5 1

total (Jn. 1 a. 10, 2012) 100.0% 1,571.4 190

RaNkiNgS By aSSet ClaSS

All Asst Classs Itrst Rat-Lik

Cmmit-LikRrs Crtibls

* According to data compiled by Bloomberg from SEC filings.



9/10

1 2 3 4 5 6 7 8 9 10

u.S. RegiSteRedStRuCtuRed NoteuNdeRwRiteRS**

2012 yeaR-to-date

RaNkMaRketSHaRe

VoluMeuSd (MlN)

dealCouNt

Bank o America 1 23.3% 5,607.9 258

JPMorgan 2 22.1% 5,317.5 830

UBS 3 14.3% 3,440.4 1,893

Goldman Sachs 4 8.3% 1,985.5 270

Morgan Stanley 5 7.6% 1,822.1 210

Barclays 6 6.2% 1,485.8 338

Incapital 7 3.3% 786.9 15

HSBC 8 2.9% 697.7 216

RBC 9 2.9% 697.2 317

Citigroup 10 2.6% 627.8 79

Wells Fargo 11 1.9% 461.6 84

Credit Suisse 12 1.7% 397.7 169


BMO 14 0.7% 160.7 249

Scotiabank 15 0.6% 137.2 18

SunTrust 16 0.2% 51.0 5

RBS 17 0.0% 1.9 3

Lloyds 18 0.0% 0.8 1

total (Jn. 1 a. 10, 2012) 100.0% 24,055.6 5,016

gloBal RateS-BaSedStRuCtuRed NoteuNdeRwRiteRS**

2012 yeaR-to-date

RaNkMaRketSHaRe

VoluMeuSd (MlN)

dealCouNt

DZ Bank AG 1 20.3% 9,720.48 172

UBS 2 9% 4,316.65 436

Deutsche Bank AG 3 8.9% 4,259.68 127

Barclays 4 5.4% 2,596.28 202

Bank o America Merrill Lynch 5 4.5% 2,136.23 144

LBBW 6 4.4% 2,092.22 35

Societe Generale 7 4.2% 1,995.48 93

Credit Suisse 8 3.5% 1,682.26 55

Goldman Sachs 9 3.1% 1,486.89 36

Citigroup 10 3% 1,447.05 111

UniCredit 11 2.6% 1,253.96 27

ING Groep NV 12 2.6% 1,246.82 116

Banco Popolare SC 13 2.1% 1,026.87 2

BNP Paribas Group 14 2% 969.43 46

Credit Agricole CIB 15 1.9% 919.66 78

JPMorgan 16 1.6% 776.11 61

Commerzbank AG 17 1.6% 755.56 38

Standard Chartered PLC 18 1.5% 699.87 87

HSBC Bank PLC 19 1.4% 683.91 64

HSH Nordbank AG 20 1.4% 681.87 43

total 78 100% 47,998.89 2,487

inve bug $181 mn f equ-nke ne a week.Eg f e nne age ffeng vea wee n caeg,ncung ee w e s&P 500 inex a e uneng. RalBak Caaa e bgge f e ne, $40.1 mn fne-ea ecuee Appl Ic. teage ne vea wanke ae: Gl-ma Sachs GrpIc. ue $80 mn

f caabe ep-up e-cue. revee cn-vebe accune f$30.1 mn f ae.uBS AG ue eage, $7.28 mn fne e Chsa-pak erg Crp.

u.S. urritrs*

Glbal urritrs**

RaNkiNgSSeC-RegiSteRed NoteS*

aSSet ClaSS BReakdowN

* According to data compiled by Bloomberg from SEC filings.

** Based on data submitted to Bloomberg by banks. Excludes variable-principal redemption,reverse- and synthetic-convertibles. Global includes Euromarket issues from all nations anddomestic European notes. Excludes SEC registered issues.

iSSuaNCe SPotligHt

107.3

10.8

73.4

36.7

144.5

30.4

126.1

94.6

42.5 44.1 49.5 41.1

0

20

40

60

80

100

120

140

160

8/11 9/11 10/11 11/11 12/11 1/12 2/12 3/12 4/12 5/12 6/12 7/12

MillionsofDollars

Proprietary Index

Sales of U.S. SEC-

registered notes


Equity,

58.8%

Rates, 27.0%

Reverse

Convertible,

9.8%

Commodity,

3.1%

FX, 1.3%

Last Week

Equity,62.3%

Hybrid, 2.4%

Rates, 15.3%

Reverse

Convertible,

6.6%

Commodity,

6.5%

FX, 2.9%

Other, 3.9%

Year to Date




10/10

1 2 3 4 5 6 7 8 9 10

iSSueR BBgidtRadedate

aMouNtiN MlNS

uNdeRwRiteR tyPeteRM iNMoNtHS

CallaBle uNdeRlyiNg

Goldman Sachs BBG0038K6KT8 9-Aug-12 $80.0 Incapital Rates 120 Yes callable stepupRBC BBG0038MWCC1 10-Aug-12 $40.1 RBC Equity-Linked 12 Yes aapl

Scotiabank BBG0038PRL30 7-Aug-12 $14.6 Scotiabank Equity-Linked 19 No mxea

Goldman Sachs BBG003905T40 6-Aug-12 $13.9 Goldman Sachs Equity-Linked 13 No spx

Scotiabank BBG0038PW3Y0 6-Aug-12 $11.1 Scotiabank Equity-Linked 18 No mxea

Bank o America BBG00384RN88 8-Aug-12 $10.0 Bank o America Equity-Linked 180 Yes spx

Barclays BBG00393SLC7 10-Aug-12 $8.4 JPMorgan Equity-Linked 18 No sx5e

Goldman Sachs BBG00393ZJT6 10-Aug-12 $8.3 Goldman Sachs Equity-Linked 18 No spx

JPMorgan BBG003818N58 6-Aug-12 $8.3 JPMorgan Equity-Linked 13 No basket

UBS BBG00394B3B4 9-Aug-12 $7.3 UBS RevCon 6 No chk

Goldman Sachs BBG0038W1LP9 10-Aug-12 $6.5 JPMorgan Equity-Linked 18 No spx

HSBC BBG0038PSQM7 10-Aug-12 $6.4 HSBC Equity-Linked 60 No basket

Goldman Sachs BBG0038W1MB2 10-Aug-12 $5.2 JPMorgan Equity-Linked 12 No spx

JPMorgan BBG0038V39J3 9-Aug-12 $4.6 UBS Equity-Linked 12 Yes apc

Bank o America BBG003926JW6 10-Aug-12 $4.0 Bank o America Commodity 12 Yes djubstr

Goldman Sachs BBG0038W1LJ6 10-Aug-12 $3.9 JPMorgan Equity-Linked 12 No spx

Scotiabank BBG0038PT4N4 6-Aug-12 $3.7 Scotiabank Equity-Linked 18 No mxea

Goldman Sachs BBG003923P91 7-Aug-12 $3.7 Goldman Sachs Equity-Linked 19 No spx

UBS BBG00394B3L3 9-Aug-12 $3.6 UBS RevCon 6 No ms

UBS BBG003921Z28 10-Aug-12 $3.0 JPMorgan Commodity 12 No goldlnpm

Credit Suisse BBG0038W54H2 9-Aug-12 $3.0 JPMorgan Equity-Linked 18 No spx

Credit Suisse BBG0038W54K8 9-Aug-12 $3.0 JPMorgan Equity-Linked 18 No iyr

RBC BBG00381PMT5 10-Aug-12 $3.0 RBC Rates 150 Yes callable stepup

JPMorgan BBG0038ZYNM5 9-Aug-12 $2.6 UBS Equity-Linked 12 Yes s

UBS BBG0038VKRQ6 8-Aug-12 $2.5 JPMorgan Commodity 12 No paa

RBC BBG0038QDMG7 6-Aug-12 $2.3 Goldman Sachs Equity-Linked 18 No mxea

JPMorgan BBG0038V3CM2 9-Aug-12 $2.3 UBS Equity-Linked 12 Yes GG

UBS BBG00394B3G9 9-Aug-12 $2.2 UBS RevCon 6 No cmi

Goldman Sachs BBG00393XGQ7 10-Aug-12 $2.1 JPMorgan FX 24 No cny/usd

Credit Suisse BBG0038S3PS4 6-Aug-12 $2.0 JPMorgan Equity-Linked 42 No indu

Goldman Sachs BBG0038W1NX6 10-Aug-12 $1.8 JPMorgan Equity-Linked 12 No spx

UBS BBG00394B3Q8 10-Aug-12 $1.8 UBS Equity-Linked 60 Yes sx5e

Goldman Sachs BBG00393XJF3 10-Aug-12 $1.8 JPMorgan FX 0 No mxn/usd

JPMorgan BBG0038V3BD4 9-Aug-12 $1.5 UBS Equity-Linked 12 Yes hot

JPMorgan BBG0038S26S7 10-Aug-12 $1.5 JPMorgan Equity-Linked 12 Yes hal

JPMorgan BBG0038J4482 8-Aug-12 $1.3 JPMorgan RevCon 12 No aapl

JPMorgan BBG0038W3ZT2 8-Aug-12 $1.3 JPMorgan RevCon 12 No aapl

HSBC BBG00391XK55 10-Aug-12 $1.3 JPMorgan Equity-Linked 12 Noaapl, coh, goog, mjn, myl, lvs, sbux,

hot, ti, wynn, yum

Barclays BBG0037R9PV7 7-Aug-12 $1.3 Barclays Equity-Linked 24 No eem

JPMorgan BBG0038S2616 10-Aug-12 $1.2 JPMorgan RevCon 12 No c

UBS BBG0039283R5 10-Aug-12 $1.2 UBS Equity-Linked 12 Yes cmi

UBS BBG00394B3J6 9-Aug-12 $1.1 UBS RevCon 6 No PAY

JPMorgan BBG0038ZYPV0 9-Aug-12 $1.1 UBS Equity-Linked 12 Yes HIG

RBC BBG0038SRZG9 9-Aug-12 $1.1 UBS RevCon 24 No csx

Barclays BBG0038MJ443 7-Aug-12 $1.1 Barclays RevCon 12 0 cat

Barclays BBG0038W45K6 8-Aug-12 $1.0 Barclays RevCon 12 No cmi

u.S. SeC-RegiSteRed NoteS Ne f $1 mn me e week f Aug. 6, 2012.


brief stnt newsletter 2012168 1 (1)

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