Credit Suisse preps notes tied to social media; JPMorgan to sell gold miners ETF, Russell

By Sheri Kasprzak

New York, May 13 - Investors looking to connect with social media stocks will have the chance in the next few days as Credit Suisse AG, Nassau Branch pulls together an offering of notes linked to two of the largest social media companies.

The 10% notes are linked to the common stock of Facebook Inc. and LinkedIn Corp.

"It's a way to invest in these stocks without being fully exposed to short-term fluctuations," said a market insider asked about the structure.

The notes pay par at maturity unless either stock ever closes at or below its knock-in price during the life of the notes. The knock-in price will be 50% to 53% of the initial level. The knock-in price will be set at pricing on May 17. If the knock-in price is breached, the investors will be exposed to the losses of the worst-performing stock.

"This would be for someone who is relatively confident that these stocks won't lose half their value over a year and a half," said the market source.

Facebook's (NasdaqGS: FB) stock has fallen by 30.21% between May 18, 2012 and May 10, 2013. LinkedIn's (NYSE: LNKD) stock climbed by 57.27% between May 14, 2012 and May 10, 2013.

JPMorgan eyes gold, Russell

Also coming up on May 17, JPMorgan Chase & Co. is set to price 10% autocallable yield notes linked to the Market Vectors Gold Miners exchange-traded fund and the Russell 2000 index.

The notes, which are due May 21, 2014, pay par plus accrued interest if both components close at or above their initial levels on any of the quarterly call dates. A trigger event will occur if either component falls below the 60% trigger level on any trading date. Payout at maturity will be par unless the performing component finishes below it initial level and a trigger event occurs, in which case the payout will be par plus the return of the least performing component, up to a cap of par.

From May 14, 2012 to May 10, 2013, the Market Vectors Gold Miners ETF dropped by 27.24%. The Russell 2000 index climbed by 25.19% from May 14, 2012 to May 10, 2013.

On Monday, the ETF lost 0.78, or 2.62%, to close at 29.03. The Russell 2000 index dropped by 1.37, or 0.14%, to close Monday at 973.79.

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