Fixed-Income Flight Sends Sales to 11-Year Low
Global sales of structured notes in August are on pace to fall to an 11-year low as investors shun the securities amid concern that fixed-income assets will be hurt by a tapering of the Federal Reserve’s bond purchases.
Banks sold $2.18 billion of the securities in Europe and Asia through August 28, down from $6.9 billion in 2012 and the least for any month since February 2002, according to data compiled by Bloomberg that exclude notes where the amount of principal returned can vary. Sales of credit-linked notes are the lowest since January 2004 at $688 million, the data show.
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