Sales of All-or-Nothing Structured Notes Rise on Volatility Bets
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Sales of structured notes that pay coupons only if stocks move within preset ranges surged to the highest in six years as investors speculate that swings in equity markets will remain subdued.
Global issuance of digital coupon notes linked to equities jumped to $1.55 billion this year from $559 million in the same period of 2013 even as sales of structured products declined, according to data compiled by Bloomberg. The securities, also known as all-or-nothing notes, generate returns when volatility is low.