Note Buyers Boost Bets on European Stocks
U.S. investors are increasingly buying structured notes tied to European stocks in preference to domestic equities as the area emerges from recession and the Federal Reserve prepares to slow asset purchases.
Sales of U.S. notes linked to the Euro Stoxx 50 Index climbed to $379.2 million in August and total $2.01 billion for the year, more than seven times the $275.8 million issued through the same period in 2012. The volume of securities tied to the Standard & Poor’s 500 Index, while still the highest for any linked asset, has declined 20 percent to $5.99 billion.
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