Sales Surge of Long-Term Notes Tied to Stocks on Risk Appetite
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U.S investors are betting soaring stocks can deliver higher yields through structured notes that potentially expose them to large losses and lock up capital for as long as 20 years.
Sales of equity-linked securities that mature in 10 years or more and can be redeemed early surged to $301.2 million in the first quarter, according to data compiled by Bloomberg. Banks issued less than one-eighth as many notes, $35.5 million, the year before.