Published on 7/28/2016 in the Prospect News Structured Products Daily.
New Issue: BMO prices $1.9 million contingent risk absolute return notes tied to iShares MSCI EAFE
By Wendy Van Sickle
Columbus, Ohio, July 28 – Bank of Montreal priced $1.9 million of 0% contingent risk absolute return notes due July 31, 2018 linked to the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the fund finishes above the initial level, the payout at maturity will be par plus the fund gain.
If the fund falls but finishes above the 71% barrier level, the payout will be par plus the absolute value of the return, up to a maximum downside return of $1,290 per $1,000 of notes.
Otherwise, investors will be fully exposed to any losses.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Contingent risk absolute return notes
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Underlying ETF: | iShares MSCI EAFE ETF
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Amount: | $1.9 million
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Maturity: | July 31, 2018
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If ETF return is positive, par plus return, if fund falls but not by more than 29%, par plus absolute value of return, up to a maximum downside redemption amount of $1,290 per $1,000 principal amount; if fund falls by more than 29%, full exposure to any losses
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Initial level: | $57.21
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Barrier level: | $40.62, 71% of initial level
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Pricing date: | July 26
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Settlement date: | July 29
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Agent: | BMO Capital Markets Corp.
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Fees: | None
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Cusip; | 06367THS2
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