Sales of ‘Worst of’ Notes Soar as Stocks Diverge

Sales soared 94 percent this year of U.S. structured notes where the yield depends on the worst performer in a basket of stocks, as issuers hunt for ways to lure buyers amid lower equity volatility and interest rates.

Investors bought $1.07 billion of the securities, up from $551.5 million over the same period a year earlier, according to data compiled by Bloomberg. The notes, often called “worst-of” securities, base their payout on the lowest returning of typically two or three stocks or indexes.

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