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U.S. investors are buying 65 percent more notes linked to a basket of U.K., European and Japanese stock indexes this year, spurred by a 12 percent average gain in the benchmarks since May. Banks have sold $908 million of U.S. notes tied to the Euro Stoxx 50 Index of the 50 largest euro-area companies, the U.K.’s FTSE 100 Index, and Japan’s Tokyo Stock Price Index, known as the Topix [...]
A decline in Brazil’s real and a ratings upgrade for Nigeria are spurring sales of structured notes tied to emerging market sovereign debt, while issuance of similar securities linked to euro-area nations dries up. Click here to continue reading.
Sales of U.S. structured notes tied to the share price of Apple Inc. climbed to $1.47 billion this year, on the verge of overtaking the London interbank offered rate as the second most commonly linked underlying. Investors bought $357.2 million of notes in 104 offerings tied to the world’s most valuable company in October, the biggest sales month since January 2010, according to data compiled by Bloomberg. That compares with $19 [...]
Banks are adding additional links to credit risk in the structured notes they sell, seeking to offer higher returns while taking advantage of a record bond rally. UBS AG, Credit Agricole SA and Royal Bank of Scotland Group Plc sold $51.6 million of hybrid notes in the past two months that were tied to both debt [...]
Third-quarter sales of structured notes in the U.S. fell to the lowest this year as a new round of quantitative easing and the lead-up to the November presidential election damped market volatility. Investors bought $9.37 billion of the securities, down 4.3 percent from the previous quarter, according to data compiled by Bloomberg. It was the second-lowest three-month period for issuance since at least the beginning of 2010, exceeding only [...]
U.S. sales of structured notes linked to commodities have plunged 41 percent this year, led by a drop-off in securities tied to copper, an industrial metal viewed as an economic barometer. Issuance of commodity-linked notes fell to $2.04 billion during the first nine months, from $3.44 billion during the year-earlier period, according to data compiled by Bloomberg. Securities linked [...]
Deutsche Bank AG sold the second- largest U.S. structured note this year, tied to the 50 biggest euro-area companies, after the European Central Bank president announced an unlimited bondbuying plan to support the euro. The German bank issued $429.6 million of 18-month securities on Sept. 14, according to a prospectus filed with the U.S. Securities and Exchange Commission. Investors bought $478.9 million of U.S. notes linked to the Euro [...]
Sales of structured notes in the U.S. rose 48 percent in August, led by a doubling of issuance of securities tied to interest rates, as investors look for alternatives to Treasuries paying close to historic lows. Interest-rate securities accounted for $782.9 million of structured notes sold in August, or 23 percent of the total $3.46 billion, according to data compiled [...]
Special purpose vehicles, the off-balance- sheet entities at the center of the financial crisis, account for the largest share of structured note sales in five years as investors seek alternatives to bank credit risk. SPVs have sold $5.83 billion of notes outside the U.S. this year, or 12.2 percent of the $47.8 billion market, compared [...]
Global sales of structured notes linked to inflation fell to the lowest level in five years as record-low interest rates and negative real yields squeeze returns. Banks led by Morgan Stanley and Landesbank Baden-Wuerttemberg have issued $1.12 billion of the securities this year, down 83 percent from the same period a year earlier and the [...]
