Structured product issuance reaches $1.28 billion for week, Euro Stoxx index remains popular

New York, Oct. 4 – Structured products issuance was healthy but not exceptional for the final week of September.

Based on preliminary data compiled by Prospect News, issuance reached $1.28 billion for the week.

That was up from $777 million the previous week – but the final week of the month is always the strongest for structured products issuance.

Compared with the last week of August, September was more vigorous at $1.28 billion versus $1.23 billion. However it lagged July’s $1.81 billion and was well behind June’s $2.25 billion.

However it should be noted that not all of September’s deals have been reported and compiled into the Prospect News database at this point so the total for the Sept. 24 week is likely to rise significantly.

With the deals reported so far, the volume for September as a whole was $3.16 billion, based on the preliminary figures – which means that the final figures should be not too far below the $3.77 billion volume seen in August.

That represents a slowing from earlier in the year. July saw $4.01 billion while June had $4.23 billion and May $4.79 billion.

Volume stays ahead of 2016

Year-to-date issuance is now $37.52 billion in 9,951 deals, up 34% on the $27.98 billion in 6,535 deals at the comparable stage of 2016.

In fact, this year’s market activity will soon pass the $38.72 billion of issuance for 2016 as a whole.

If September’s pace continues, the total for this year looks set to finish close to the $44.12 billion total for 2015 or the $42.56 billion figure for 2014. Those two years are the strongest on record for structured products.

Europe stays popular

Deals linked to European indexes continued to be popular in the most recent week.

Out of the top 10 deals by size, five were based on European market measures.

Leading these deals was the second biggest offering of the week, $88.92 million of autocallable market-linked step-up notes linked to the Euro Stoxx 50 index from Bank of Nova Scotia via dealer Merrill Lynch.

At number four was $39.11 million of trigger Performance Leveraged Upside Securities linked to the Euro Stoxx Banks index issued by JP Morgan Chase Financial Co. LLC and sold via JPMorgan as agent and Morgan Stanley as dealer.

Deals number five, six and 10 were all linked to the Euro Stoxx 50, being Canadian Imperial Bank of Commerce’s $38.32 million of Capped Leveraged Index Return Notes via CIBC, Bank of Nova Scotia’s $37.91 million of autocallable market-linked step-up notes via Merrill Lynch and BofA Finance LLC’s $33.25 million of market-linked step-up notes, also via Merrill Lynch.

Only the week’s top deal was linked to a U.S. index, BofA Finance’s $103.70 million of accelerated return notes linked to the S&P 500 index via Merrill Lynch.

The other members of the top 10 were Bank of Nova Scotia’s $49.82 million of capped buffered enhanced participation notes linked to the iShares MSCI Emerging Markets exchange-traded fund via Scotia as agent and Goldman Sachs as dealer and Credit Suisse AG, London Branch’s $33.85 million of accelerated return notes linked to a basket of international equity indexes via Merrill Lynch.

Merrill is top dealer

Given the banks working on the top 10 deals, it is no surprise that Merrill Lynch was the number one dealer for the week with a total of $540 million or 42.1% of the week’s volume.

UBS was second with $311 million in 127 deals, or 24.2% of the volume.

Barclays Bank plc was the top issuer with $187 million in 44 deals, or a 14.6% share, closely followed by BofA Finance with $181 million in six deals, a 14.1% share.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.