Goldman Sells Largest Structured Note in Six Years Outside U.S.Alastair Marsh
Goldman Sachs Group Inc. sold its largest structured notes outside the U.S. in six years, raising 115 million euros ($151.5 million) from securities tied to swaps.
The 15-year notes will initially pay coupons based on the rate for 10-year euro constant-maturity swaps, benchmarks that measure the cost of exchanging floating rate and fixed interest payments through the swaps market, according to data compiled by Bloomberg. The sale was the New York-based bank’s largest outside its home market since it raised 230 million euros in August 2007, the data show.
Sophie Bullock, a spokeswoman for Goldman Sachs in London, declined to comment on the notes.
Investors in the securities will receive an additional payment from the fourth year onwards based on the difference between 10-and two-year swap rates, Bloomberg data show. The 1.61 percentage-point gap between the two rates is the widest since January 2011, the data show.
A constant maturity swap is a variation of an interest rate swap where the floating interest portion is reset periodically.
Goldman raised $552.8 million from selling 31 structured notes outside the U.S. this year, up from $503.4 million in the same period last year, according to Bloomberg data.