Offering: $1 billion iPath exchange-traded notes linked to the Dow Jones - AIG Commodity Index Total Return - in three offerings: $500 million in June, $250 million in October and $250 million in November.
| Terms: | The 30-year notes pay par maturity multiplied by the index factor - the closing value of the index divided by the initial level, minus the investor fee of 0.75% of par per year, multiplied by the index factor divided by 365, calculated daily.
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| Comments: | "These are the most like [exchange-traded funds]," said Keith Styrcula, chairman of the Structured Products Association of the iPath notes. "You have a fee that's charged that's transparent. And it was almost $1 billion for those three products alone ... We need more successes like this one."
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| Bear Stearns Cos. Inc.
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| Offering: | $38.5 million notes linked to the U.S. Adagio Strategy index
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| Terms: | The index is reduced by 22.5 basis points a month and investors receive a coupon in the Octobers from 2007 through 2011 equal to any positive gain on the index minus the sum of paid coupons. Payout at maturity is par.
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| Comments: | "It provides the investors with a bit of diversity," said a market source who chose the offering as one of the more interesting deals of the year. "You have multiple asset classes so that spreads out risk but it's also a way to have a diversified investment within one product."
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