Structured Notes >>>
Global sales of structured notes linked to inflation fell to the lowest in 12 years as sluggish price growth in the world’s biggest economies deterred investors. Banks sold $72 million of the securities in the first quarter, 66 percent less than the previous period and 10 percent of the total issued in the first three [...]
Structured notes tied to the gap between short- and long-term rates, some of the most popular this year, may lose value after Federal Reserve Chairman Janet Yellen said borrowing costs could rise early in 2015. Shorter-term rates climbed at a faster pace than longer ones after Yellen said on March 19 that the benchmark funds [...]
Structured-note investors are making their biggest bets on Silicon Valley companies from Apple Inc. to Zynga Inc. in at least four years as banks seek out more volatile companies to boost yields. Click here to view the entire article.
Bank of America Corp., last year’s largest issuer of U.S. structured notes, sold the fewest of the securities in two and a half years in February as its improving creditworthiness makes it harder to create attractive products. Sales dropped 85 percent from January to $86.9 million, the lowest since $62.7 million in August 2011, according [...]
Sales of structured notes linked to the credit of Russian companies climbed to the highest in three years last month, as investors bet the country’s economy could weather emerging market turmoil and the crisis in the Ukraine. Click here to view the entire article.
Sales of structured notes betting that the largest U.S. banks will rise in value climbed to the highest since June, buoyed by the likelihood that an improving economy will lead to increased lending. Issuers sold $88.6 million of U.S. notes tied to the country’s six biggest banks, including JPMorgan Chase & Co. and Bank of [...]
Banks sold the most U.S. structured notes tied to Japanese stocks for any January since at least 2010 after unprecedented central bank stimulus contributed to soaring indexes and the yen’s slide against the dollar. Issuance of securities linked to indexes or funds of Japanese companies has totaled $64.6 million so far this month, almost four [...]
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Banks that sell U.S. structured notes may be pressed to further increase the complexity and maturities of the securities as their declining credit risk makes it harder to pay attractive returns. An average of five-year credit-default swap prices for the six largest U.S. banks dropped to a six-year low of 71.8 basis points on Jan. [...]
A regulatory push to make complex securities easier to understand could change how banks disclose risks for exchange-traded notes for the first time since they began trading in 2006. Lenders may not be adequately explaining to investors how they value ETNs, Amy Starr, head of the Securities and Exchange Commission’s capital markets trends office in [...]