Investors Seek Equity Gains in Credit-Index Notes

Banks have sold the most structured notes tied to credit-default swap indexes this year since the benchmarks were created, spurred by Scandinavian investors seeking alternatives to volatile stocks.

Issuance soared six-fold compared with the same period a year earlier, as Nordea Bank AB and SEB AB led banks in raising $720.9 million, according to data compiled by Bloomberg. Notes that bet on the creditworthiness of the 50 mostly junk-rated European companies in the Markit iTraxx Crossover Index have been the most popular, accounting for $458.5 million of sales.

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