Reverse Convertible Sales Set to Fall 36 Percent in 2014
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Sales of structured notes known as reverse convertibles have dropped 36 percent in the U.S. this year, as a rising stock market and low interest rates make it difficult to lure buyers.
Issuance has totaled $948.5 million and is on pace for the fourth straight year of declines, according to data compiled by Bloomberg. The notes, which pay a fixed coupon, convert to stock at a loss when the linked company’s shares drop beyond a certain level.