Barclays Sells First Uridashi Notes Tied to Nvidia #$%$&P Gains
"Barclays’s five-month notes yield 9.02 percent monthly as long as Nvidia shares are at or above 90 percent of the stock’s Jan. 31 closing, while the coupon drops to 0.5 percent if the price falls by more than the 10 percent buffer, according to the prospectus for the product. If the shares gain more than 10 percent, the notes are redeemed at their full value.
Should the stock close below 90 percent of its initial value on any day between Feb. 1 and 10 trading days before expiration on June 21, the notes convert into the Nvidia stock at maturity, according to the marketing materials.
Nvidia shares closed at $12.26 on Jan. 31, after losing 34 percent of their value through last year since the end of 2009. In the latest earnings release in November, the company reported quarterly profit surpassing analysts’ estimates, helped by sales of chips used in tablet devices.
Marina Totsuka, a Tokyo-based spokeswoman for Barclays, declined to comment on the reasons it picked the stock for the notes. "