Reverse Inquiry Leads ABN To Financial Sector Play

ABN AMRO has issued a reverse convertible note linked to a financial sector exchange-traded fund, on the back of a reverse inquiry. The three-month note offers an annualized 14% and return of capital, providing the Financial Select Sector SPDR(R) Fund doesn’t drop below 80% of its value at launch. The fund is diversified across financial service firms, including names such as Citigroup and American International Group.

Brian Jones, co-head of private investor products at ABN in New York, described the counterparty as a large retail investor.