Structured Notes >>>

    Sales of ‘Worst of’ Notes Soar as Stocks Diverge

    Sales soared 94 percent this year of U.S. structured notes where the yield depends on the worst performer in a basket of stocks, as issuers hunt for ways to lure buyers amid lower equity volatility and interest rates. Investors bought $1.07 billion of the securities, up from $551.5 million over the same period a year [...]

    GE, BofA Lead Drop in U.S. Rate-Tied Note Sales

    General Electric Co. and Bank of America Corp. have all but stopped issuing U.S. structured notes tied to interest rates, leading a 3.7 percent decline in sales of the securities this year. Bank of America’s only such offering in 2013 has been $7.35 million of 10-year notes on June 24, after selling $730.7 million during [...]

    First-Half Note Sales Fall Amid Low Volatility

    Structured-note sales fell during the first half of the year in the U.S. and Europe, as lower stock volatility and interest rates left issuers struggling to offer attractive terms. U.S. issuance dropped to $20.2 billion during the period, 6 percent less than last year and the least for the first six months since the start [...]

    RBS Exit Highlights Cost Challenge for Issuers

    Declining profits and tightening regulation of structured products are prompting banks from Royal Bank of Scotland Group Plc to Rabobank Groep to quit the business. RBS last week became the third European bank to close its structured products operation for retail investors since March, citing high capital costs and expenses for the securities. Dutch lender [...]

    Sales Surge of Notes That Shield From Rate Rises

    Banks sold $548.3 million of U.S. structured notes in May that offer protection from rising interest rates, the most in almost two years, on concerns that borrowing costs may rise as the Federal Reserve prepares to reduce unprecedented stimulus measures. The most popular such securities were those that eventually yield a coupon that floats above the London interbank [...]

    Buyers Snap Up Notes Tied to Single Stocks

    Our page 1 this week: Investors looking to boost returns are choosing notes tied to single stocks rather than to indexes. Inside: Issuance of credit-linked notes linked to South Korean government debt jumps to a nine-month high, and sales of yen notes betting on falling rates dry up.

    Investors Buy Credit-Linked Notes Tied to Malawi, Bahamas

    Our page 1 this week: Investors on the hunt for yield are buying notes tied to the debt of governments including Malawi, Croatia and the Bahamas. Inside: Australian issuers may be facing more regulatory scrutiny, and Hans-Georg Vetter talks about Zuercher Kantonalbank’s “total expense ratio” for structured products and why the company decided to disclose [...]

    Electronic Note Services Face Regulatory Hurdles in U.S.

    Here’s page 1 of the Structured Notes newsletter this week: Electronic platforms for selling notes that have been popular in Europe are having more trouble catching on in the U.S., because of different regulations. Inside: We take a look at a new species of note, South Korea’s “king crab” securities, and a Swiss bank starts disclosing [...]

    SocGen, HSBC Rise in Global Note Sales as UBS Drops

    Page 1 of this week’s Structured Notes newsletter: There’s been a league table shakeup, as banks such as JPMorgan and Societe Generale have seen growing note sales (excluding the U.S. market), while volume for other issuers has sharply declined. Inside: How structured note holders contributed to the price drop in gold, and what one lawyer [...]

    Drop in Gold Puts $1.1 Billion of Notes at Risk

    Page 1 of Structured Notes this week: Gold’s decline of about 14 percent in two days put more than a billion dollars of U.S. structured notes at risk. Inside the full edition: Rabobank makes deep cuts in its equity derivatives team amid tighter regulations, sales of notes in the Brazilian real tied to government debt [...]

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