Another Structured Note Cashes In Early
That’s four structured notes already this year to cash early and it’s only February 12th!!! Today’s early encashment (RBS 24) gave clients a return of 16.25% in only 12 months in US dollars, 15.25% in sterling.
deVere Group has been at the front of the structured note market for several years now.
In the States structured notes remain very popular with a move towards equity linked structures.
This has been prompted by the best start to a year in two decades for stocks and the biggest loss for investment-grade bonds in 14 months is prompting a surge in demand for equity- linked structured notes.
U.S. sales of notes tied to stocks totaled $2.41 billion in January, the most since September when the Standard & Poor’s 500 Index rose to a five-year high, according to data compiled by Bloomberg. Equity-linked securities accounted for 71 percent of the $3.39 billion of structured notes sold last month, up from an average of 64 percent in 2012.
Mounting confidence in the global economy is fueling speculation that the time may be right for a so-called great rotation from bonds into stocks. An unprecedented flood of money into bond funds last year, which helped push yields to record lows, is reversing.
Nigel Green deVere Group
Blog written February 12th