Note Sales Fall to Lows on Europe, Downgrades
Structured note sales in June fell to a six-month low in the U.S., as well as in Europe and Asia, capping off a first-half decline amid downgrades of the largest issuers and an escalating euro-area debt crisis.
Banks in the U.S. issued $2.68 billion of the securities last month, a drop of 35 percent from May and the least since December, according to data compiled by Bloomberg. Outside the U.S., excluding notes where the amount of principal returned can vary, sales totaled $4.77 billion, less than half of the $10.4 billion sold in the same month last year and 18 percent below the level in May. For the first half of the year, global issuance was the lowest in 10 years.