UniCredit sold $2.69 billion of the securities through Nov. 16, making it the fourth-biggest global issuer this year, according to data compiled by Bloomberg. Germany’s DZ Bank AG dominates the market with $15 billion of issuance, followed by Deutsche Bank AG at $4 billion and UBS AG with $3.1 billion, data show. Santander sold almost $577.9 million of notes, almost four times its total for last year.
UniCredit and Santander are lifting their share of a market that’s shrinking as investors shun the securities because low interest rates are hurting returns. Total issuance of $72 billion this year is the lowest since 2003, according to data compiled by Bloomberg.
Silvia Lamberti, a spokeswoman for UniCredit in Vienna, declined to comment. Angela Roche Riesco, a Santander spokeswoman, also wouldn’t comment. The data exclude the U.S. and doesn’t count securities where the amount of principal repaid can vary.
UniCredit sold the fourth-largest structured note this year outside of the U.S., according to Bloomberg data. The 609.9 million euros ($777.3 million) of five-year securities, issued on July 13, pay an annual coupon of 5.1 percent for three years. After that time investors receive three times the three-month euro interbank offered rate, capped at 5 percent.
In the U.S., sales of the notes so far this year are at $34.4 billion, the least since Bloomberg began tracking the data in 2010.
To contact the reporter on this story: Alastair Marsh in London at firstname.lastname@example.org