Incapital launches new CARS structure; Barclays to price commodities-linked notes

By Sheri Kasprzak

New York, April 19 - Incapital LLC led structured products news Thursday with the launch of its CARs structure.

CARs, according to Incapital literature, are range certificates of deposit issued by JPMorgan Chase Bank, NA that have contingent coupons that rely upon the reference stock remaining between an upper and lower limit.

Ann Pinkerton, a spokeswoman for Incapital, said Thursday that representatives from the company would be available at a later date to talk at length about the structure but were unavailable Thursday.

Incapital plans to price several CARs linked to Microsoft Corp.; eBay, Inc.; Apple Inc.; Ford Corp.; JetBlue Airways, Inc. and SanDisk Corp.

The Microsoft CDs will have a contingent coupon of 18%, the eBay CDs a 26% coupon, the Apple CDs a 30% coupon, the Ford CDs a 35% coupon, the JetBlue CDs a 38% coupon and the SanDisk CDs a 36% coupon.

The contingent coupon is paid as long as the reference stock remains within a specified range during the life of the CD. For the Microsoft deal, the range is plus or minus 9% from the initial level, for eBay plus or minus 13%, for Apple plus or minus 15%, for Ford plus or minus 17.5%, for JetBlue plus or minus 19% and for SanDisk plus or minus 18%.

Incapital also plans to price an index-linked CD linked to the Nasdaq 100 index and the index will have a contingent coupon of 18%. The range for the index is plus or minus 9%.

All the deals will price on April 24 and mature on April 25, 2008.

Barclays' commodities notes

In other structured products news, commodities remained strong in the market with Barclays Bank plc announcing an offering of 3½ year principal-protected notes linked to a basket of commodities that includes aluminum, reformulated gasoline before oxygenated blending, nickel, natural gas and silver.

If the basket return is greater than or equal to 0%, the notes pay par plus the principal times the product of the participation rate - 100% - and the basket performance.

If the basket performance equals less than 0%, investors will receive par at maturity.

The notes are set to price April 30.

RBC prices reverse convertibles

Elsewhere, Royal Bank of Canada priced $1 million in 17.75% reverse convertibles linked to the First Marblehead Corp.

The six-month notes pay par at maturity unless the stock falls below the 70% knock-in level durin the life of the notes and finishes below the initial share price.

If that is the case, payout will be a number of First Marblehead shares equal to $1,000 divided by the initial share price.

In other reverse convertibles news, ABN Amro Bank NV said it intends to price 17% knock-in reverse exchangeable securities linked to the Nasdaq Stock Market, Inc.

The three-month notes pay par at maturity unless the stock falls by more than 20% during the life of the notes and finishes below the initial share price.

In that case, the notes pay a number of shares equal to $1,000 divided by the initial share price.

The notes are set to price on April 24.

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