U.S. Rate-Tied Sales Tumble to Four-Year Low

Monthly sales of structured notes tied to interest rates fell to an almost four-year low last month as issuance of securities that pay a fixed coupon plunged.

Banks sold $223.2 million of U.S. rate-linked notes in October, about half the total from a year earlier and the lowest sales since January 2010, when Bloomberg started to collect comprehensive data on the securities. Issuance of callable notes that have fixed, “step-up” coupons dropped by about 80 percent, to $75.1 million.

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