Bank of Montreal plans contingent risk absolute return notes tied to iShares MSCI Emerging Markets

By Toni Weeks

San Luis Obispo, Calif., Feb. 28 - Bank of Montreal plans to price 0% contingent risk absolute return notes due March 18, 2015 linked to the iShares MSCI Emerging Markets index fund, according to a 424B2 filing with the Securities and Exchange Commission.

A barrier event will occur if the shares close below the barrier level on any trading day. The barrier level is expected to be 72% to 76% of the initial share price and will be set at pricing.

If the final share price is greater than the initial share price, the payout at maturity will be par plus the gain.

If the return is less than or equal to zero and a barrier event has not occurred, the payout will be par plus the absolute value of the share return. If the return is less than or equal to zero and a barrier event has occurred, investors will be exposed to any losses.

The notes (Cusip: 06366RML6) will price March 13 and settle March 18.

BMO Capital Markets Corp. is the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.