Sales of Notes Tied to European Stocks Plunge on Brexit Concern
- Euro Stoxx 50-linked security sales drop 97% in Japan
- Less volatility in Euro Stoxx than Nikkei also damps demand
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Uncertainty over how a potential British exit would affect the European Union is causing U.S. and Japanese investors to eschew structured notes tied to the Euro Stoxx 50 Index.
In Japan, sales of the securities in the first five months plunged 97 percent from the same period of 2015 to $45.4 million, a four-year low, according to data compiled by Bloomberg. U.S. issuance of notes linked to the European benchmark fell 68 percent to $1.1 billion between January and May.