Structured Note Sales Slump to 11-Year Low as Regulations Bite
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Sales of structured notes in Europe and Asia fell to the lowest in 11 years in 2013 as investors spurned the securities in favor of bonds while issuers quit the industry amid greater regulatory scrutiny.
Germany’s DZ Bank AG and Landesbank Baden-Wuerttemberg led $70.6 billion of issuance last year, the least since $42.5 billion in 2002 and down from a peak of $233.3 billion in 2007, according to data compiled by Bloomberg. The data mainly cover notes tied to credit or interest rates and exclude securities where the amount of principal returned can vary.