China Slowdown Spurs Record Sales of Notes Tied to Nation's Debt
- September was the busiest month ever, with $230 million sold
- Buyers from South Korea and Japan embraced Chinese credit
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Sales of structured notes tied to the sovereign debt of China are on track for a record year, as the climbing cost of insuring against a default by the country sweetens coupons on the securities.
Banks sold $230 million of the notes in September, the busiest month ever, according to data compiled by Bloomberg, taking this year’s issuance to $642 million. That’s more than triple the $189 million banks sold during all of 2014.