Deutsche Bank Leads Euro Stoxx-Tied Note Sales
Deutsche Bank AG sold the second- largest U.S. structured note this year, tied to the 50 biggest euro-area companies, after the European Central Bank president announced an unlimited bondbuying plan to support the euro.
The German bank issued $429.6 million of 18-month securities on Sept. 14, according to a prospectus filed with the U.S. Securities
and Exchange Commission. Investors bought $478.9 million of U.S. notes linked to the Euro Stoxx 50 Index after ECB head Mario Draghi said on Sept. 6 that policy makers had agreed to a debt-purchase program that “will enable us to address severe distortions in government bond markets.”
The benchmark is attractive because it’s composed of quality companies, said Lew Altfest, president of Altfest Personal Wealth Management. Members include oil and natural gas company Total SA and beverage company Anheuser-Busch InBev NV. At the same time, all six notes sold this month have cushions to protect investors against declines in the index, to a point.