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Libor Tampering Sends Structured-Note Buyers Into Rate Swaps

Sales of structured notes tied to interest-rate swaps for fixed tenors are climbing as investors ditch the London interbank offered rate as a benchmark amid settlements over traders manipulating the measure.

Outside the U.S., issuers sold $8.4 billion of securities that base their yield on constant-maturity swap rates this year, 22 percent more than the same period in 2012, according to data compiled by Bloomberg. Sales of structured notes tied to Libor fell 45 percent to $2.42 billion.