Published on 11/3/2014 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $175,000 contingent risk absolute return notes on EM ETF
By Marisa Wong
Madison, Wis., Nov. 3 – Bank of Montreal priced $175,000 of 0% contingent risk absolute return notes due Oct. 31, 2016 linked to the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the fund finishes above its initial level, the payout at maturity will be par plus the gain.
If falls by up to the 76% barrier level, the payout will be par plus the absolute value of the return, up to a maximum return of $1,240 per $1,000 principal amount.
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 fund: | iShares MSCI Emerging Markets ETF
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Amount: | $175,000
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Maturity: | Oct. 31, 2016
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If fund gains, par plus return; if fund falls by up to 24%, par plus absolute value of return, capped at 24%; otherwise, full exposure to any losses
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Initial share price: | $41.52
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Barrier price: | $31.56, 76% of initial share price
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Pricing date: | Oct. 28
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Settlement date: | Oct. 31
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Agent: | BMO Capital Markets Corp.
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Fees: | None
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Cusip: | 06366RXH3
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