​Daily Bulletin: Monday June 8

We start in Europe this week, where five-year structured notes on a strip of calls on Eurostoxx dividends are appearing attractive given the current term structure backwardation. The backwardation in the term structure is being caused by the impact of structured product issuance in Korea and Japan, where dealers are required to recycle risk in two-to-four year maturities. In the issuance of retail structured products in these countries on the Eurostoxx 50, investors are long the price return index without the dividend, with dealers subsequently selling the dividend in the market. In Asia, Shinhan BNP Paribas Asset Management has listed a synthetic exchange-traded fund on the Korea Exchange. The ETF, named the SMART Mainland China Small Cap CSI 500 ETF, is the first product of its kind in Korea that invests in the performance of the CSI Small Cap 500 Index.