SG Structured Products to price 0% notes linked to SGI Fed Model US Invest index

By Angela McDaniels

Seattle, Oct. 10 - SG Structured Products, Inc. plans to price 0% notes due Oct. 31, 2012 linked to the SGI Fed Model US Invest index, according to a term sheet.

The index uses the "Fed Model" of equity valuation to identify the optimal weightings of an equity component and a bond component, which are the S&P 500 Total Return index and the SGI 5Y Synthetic AAA Bond US index, respectively.

If the yield on stocks is higher than the Treasury yield, then the stock market is considered undervalued versus the bond market; if the yield on stocks is lower, then the stock market is considered relatively overvalued.

The payout at maturity will be par plus the index return.

The notes will price at 97% of par on Oct. 26 and settle on Oct. 31.

SG Americas Securities, LLC will be the principal agent, with LaSalle Financial Services, Inc. as co-agent.

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