Landmark structured products deals of 2009

iPath S&P 500 VIX Short-Term Futures and iPath S&P 500 VIX Mid-Term Futures exchange-traded notes

Deal: The ETNs seek to replicate the S&P 500 VIX Short-Term Futures Total Return index and the S&P 500 VIX Mid-Term Futures Total Return index The indexes offer exposure to VIX futures contracts and reflect the implied volatility of the S&P 500 index at various points along the volatility forward curve.

Issuer: Barclays Bank plc

Size: $3.25 billion

Launch: Jan. 29, 2009

Maturity: Jan. 30, 2019

Symbol on NYSE Arca: VXX and VXZ

• First ETN to provide exposure to volatility

• Solid trading volume since launch

• "A solution for sophisticated investors to manage risk and hedge equity exposure." - Philippe El-Asmar, managing director, head of Investor Solutions at Barclays Capital

• "Structuring an ETN linked to volatility, at the time, was something very new, very innovative. It was the first product linked to VIX, and there have not been any others as of now." - Richard Couzens, head of U.S. products origination, Investor Solutions at Barclays Capital

Barclays Bank long and short leveraged exchanged-traded notes tied to S&P 500 Total Return index

Deal: First ETNs to offer exposure to leveraged returns linked to the performance or inverse performance of the S&P 500

Issuer: Barclays Bank plc

Size: $875 million

Pricing date: Nov. 17, 2009

Maturity: Nov. 20, 2014

• First ETN to offer exposure to the S&P 500

• "It was another innovative solution. It's too soon to measure its success yet as it is a brand new product. But you definitely have the characteristics of an innovative structure. It is the first ETN linked to the S&P; it gives investors leveraged access to the index while it offers them liquidity." - Richard Couzens, head of U.S. products origination, Investor Solutions at Barclays Capital

UBS' E-Tracs linked to Dow Jones - UBS Commodity index

Deal: 0% exchange-traded access securities due Oct. 31, 2039 linked to the Dow Jones - UBS Commodity Index Total Return index

Issuer: UBS AG

Size: $101 million

Pricing date: Oct. 28, 2009

Maturity: Oct. 31, 2039

• A new ETN competing with the iPath Dow Jones-UBS Commodity Index Total Return

• "It is the lowest cost diversified commodity exchange-traded commodity product in the market. That includes both ETNs and ETFs. And it's cheaper by a wide margin. Investors used to have to 'pay up' for diversified exposure to commodities. That is no longer the case." - A sellsider

Goldman Sachs autocallable index-linked notes linked to S&P 500

Deal: 0% autocallable index-linked notes due Aug. 19, 2010 linked to the S&P 500 index, automatically called at par plus 7% if the index closes at or above 107% on any day during the term; otherwise payout is par plus the index return with a minimum coupon of 6.6% if the index closes below 85% of its initial level on any day.

Issuer: Goldman Sachs Group, Inc.

Size: $347 million

Pricing date: Nov. 13, 2009

Maturity: Aug. 19, 2010

• "Autocallable notes are very popular and this Goldman Sachs offering, especially. It's almost a no-lose proposition. In a market where investors starve for yield, these trades, as long as they don't get too complicated, can be very attractive for yield pick-up," Keith Styrcula, chairman of the Structured Products Association

• "It was huge. It was sold through JPMorgan private banking. When you have open architecture, when a private bank or a wirehouse channel will sell other products than their own, you get those huge deals." - A sellsider

SunTrust Bank's certificates of deposit linked to Brazilian real

Deal: Certificates of deposit linked to the Brazilian real. If the real appreciates relative to the dollar on the annual observation date, the interest payment will be 2.75% per year. If the real depreciates relative to the dollar on the annual observation date, the interest payment will be 6% per year.

Issuer: SunTrust Bank

Pricing date: Sept. 24, 2009

Distributor: InCapital LLC

Maturity: Sept. 22, 2014

• Simplicity

• High annual minimum coupon

• "The 2.75% minimum makes it one heck of a deal. This is a very attractive structure. You've got the government guarantee, plus a guaranteed payment above the current Treasury yield and equal to traditional brokered CD rates, all of that with the potential to earn a pretty high coupon based on the performance." - Tim Bonacci, president of CD Funding Group LLC

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