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Structured Notes

Sales of Rate-Tied Notes Drop on Negative Interest, Fed

March 28, 2016

BY YAKOB PETERSEIL AND CAROLINA WILSON, BLOOMBERG BRIEF Sales of structured notes tied to interest rates are dropping as rates in Europe become more deeply negative and the Federal Reserve dials back planned increases in the U.S. cost of borrowing. Globally, issuance of securities linked to constant-maturity swap rates is

Germany Probes Sales of Credit Notes to Individuals

March 10, 2016

BY YAKOB PETERSEIL, BLOOMBERG BRIEF Germany’s financial watchdog is investigating whether banks are adequately alerting investors to the risks of credit-linked notes, complex securities that some regulators consider too racy to be sold to individuals. BaFin is seeking information from issuers and some 100 distributors of the securities about how

U.S. Note Sales Rebound on Allure of Fixed Coupons

December 10, 2015

BY BEN EISEN, BLOOMBERG BRIEF Sales of U.S. structured notes climbed to their highest level in five months in November, as the stock market settled down after swooning in August and September. November issuance rose 2 percent from October to $3.05 billion, bucking the usual trend of an end-of-year decline,

Sales of Exotic ‘Dual Range’ Notes Climb to Record

September 17, 2015

BY YAKOB PETERSEIL AND BEN EISEN, BLOOMBERG BRIEF Global sales of structured notes that bet on two assets to remain within set ranges climbed to a record this year, as investors move to more exotic investments for fatter coupons. Banks sold $6.25 billion of “dual range accrual” securities through Sept.

SEC to Scrutinize Complex Exchange-Traded Products

June 19, 2015

By Ben Eisen The U.S. Securities and Exchange Commission is seeking input on the increasing complexity of exchange-traded products as interest balloons in the investments. The regulator opened a 60-day comment period about how exchange-traded notes (ETNs) and funds are being sold and used, according to a request released June

Guest Commentary: Joseph Halpern CEO of Exceed Investments

April 30, 2015

By Joseph Halpern, CEO of Exceed Investments With the dollar strengthening, a big story recently has been large inflows into currency-hedged exchange-traded funds. Using a hedge lets investors reap the benefits of global bull markets while sidestepping potential losses related to local currency depreciation. During the six months ended March 31, the euro dropped 14 percent relative to the dollar. Over

Finra Fine May Hasten Decline of Reverse Convertibles

April 30, 2015

BY BEN EISEN The latest sanction for inappropriate sales of complex structured notes known as reverse convertibles threatens to hasten their decline in the U.S., where sales have plummeted almost 90 percent in six years. Royal Bank of Canada was ordered to pay $1.43 million in fines and restitution for failing to supervise its

Special Report: 2014 Year in Review & 2015 Outlook

January 23, 2015

BY RICHARD BEDARD, BLOOMBERG BRIEF EDITOR One thing that’s nice about this job is being first to see the expert analysis of the year that was and prognostications for the year to come. As an editor, I get an early peek at what some of the industry’s smartest people think.

Facebook’s Volatility Draws Record Note Demand

December 18, 2014

BY BEN EISEN Banks are selling a record amount of U.S. structured notes tied to the stocks of fast-growing, volatile technology companies such as Facebook Inc. and Twitter Inc. Sales of securities linked to Facebook soared to $457.6 million this year, more than double the $204.2 million issued during the same period of

Credit Suisse Poised to Sell Record Number of Credit-Tied Notes

December 8, 2014

BY YAKOB PETERSEIL Credit Suisse Group AG has sold the largest number of credit-linked notes in at least 15 years after making changes that allow for smaller deals. The Swiss bank has issued 178 of the securities this year, the highest number for any year since at least 1999, according to data compiled by Bloomberg