Exotic Notes Get a Risky New Twist in a Yield-Starved Market
- London’s Marex sells subordinated Tier 2 structured products
- Deal may become a template for issuers meeting capital rules
This article is for subscribers only.
Structured-product issuers are breaking new ground in the most yield-starved market in Europe.
An arm of commodities specialist Marex Spectron sold a Swiss-franc structured note last month issued with subordinated Tier 2 capital rather than senior debt, touted as the first deal of its kind. The five-and-a-half-year securities offer both a hefty coupon and a return linked to the country’s benchmark stock index.