Deutsche preps notes tied to Asian indexes, currencies; JPMorgan plans contingent coupon CDs

By Sheri Kasprzak

New York, Jan. 3 - Despite the fact that new issue volume dropped by nearly half in the final week of 2011, there are more offerings coming up now that the holidays are over, market insiders reported on Wednesday.

Structured products volume fell by 43.84% for the week ended Dec. 25, according to data compiled by Prospect News, due largely to the holiday season. For the week ended Dec. 25, $269 billion in 22 deals were priced, compared with $480 billion in 157 deals pricing during the week ended Dec. 18.

"The market obviously was interrupted by the holidays," said one sellsider when asked about the significant drop in market volume.

"We did experience an overall drop as the year wound down. Last week was kind of an extraordinary case."

In fact, the sellsider pointed out that a new crop of offerings is already slated to come to market in the coming weeks.

Deutsche's Asian-themed notes

Among that crop of new deals, Deutsche Bank Securities Inc. announced its intention to price buffered return enhanced notes linked to Asian indexes and related currencies.

The notes are linked to the Hang Seng China Enterprises index and the Hong Kong dollar weighted at 21%; the Kopsi 200 index and the Korean won weighted at 25%; the MSCI Taiwan index and the Taiwan dollar weighted at 20%; the Hang Seng index and the Hong Kong dollar weighted at 25%; and the MCI Singapore index and the Singapore dollar weighted at 9%.

The notes are due Jan. 24, 2013band pay double the appreciation of the basket, subject to a ceiling of 18%. If the basket return is less than -10%, investors will lose all or some of their investment.

Pricing is set for Friday.

If the basket return is greater than zero, the investor will receive at maturity, subject to the cap, will pay par plus the principal amount times the basket return times the upside leverage factor, which is expected to be at least 2. The downside factor will be 1.1111% of the face amount of the notes by every 1% the basket return falls below the 10% buffer.

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