SG Structured Products to price 0% notes linked to SGI Fed Model US index

By Laura Lutz

Des Moines, Nov. 7 - SG Structured Products, Inc. plans to price an issue of 0% participation notes due Nov. 29, 2012 linked to the SGI Fed Model US index, according to a LaSalle term sheet.

The SGI Fed Model US index uses the "Fed Model" of equity valuation to identify the optimal weightings of an equity component and a bond component, which are the S&P 500 Total Return index and the SGI 5Y Synthetic AAA Bond US index, respectively.

If the yield on stocks is higher than the Treasury yield, then the stock market is considered undervalued versus the bond market; if the yield on stocks is lower, then the stock market is considered relatively overvalued.

The payout at maturity will be par plus the index return.

The notes are expected to price on Nov. 26 and settle on Nov. 29.

SG Americas Securities, LLC will be the agent, with LaSalle Financial Services, Inc. as co-agent.

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