Commodity-Linked Structured Note Sales Slump to Nine-Year Low

Banks are selling the least structured notes tied to commodities in nine years as investors shun the securities amid a slowdown in China’s economy and the prospect of the U.S. Federal Reserve winding down stimulus.

Global issuance in the first half of the year fell to about $2 billion, 41 percent lower than the same period of 2012 and the least since 2004 with securities linked to oil and gold among the biggest losers, according to a report from Barclays Plc. In the U.S., banks sold $689.6 million of the securities in the same period, the lowest since at least 2010, and have added $70.9 million this month through July 30, according to data compiled by Bloomberg.