Structured products issuance volume totals $328 million for week

New York, Oct. 11 – Structured products issuance was typically slower during the first week of October, coming in at $328 million, according to preliminary data compiled by Prospect News.

That was down from $2.06 billion the previous week – a drop that is to be expected given the concentration of deals in the final week of every month.

The figure for the week beginning Oct. 2 will increase as the final deals are reported and added to Prospect News’ records.

But even at the preliminary level, activity is healthy compared to the $226 million seen in the first week of September – although that was a period interrupted by the Labor Day holiday – the $480 million of the first week of August and the $345 million of the first week of July.

Meanwhile, the total for September is now $3.94 billion, ahead of August’s $3.77 billion and close to the $4.01 billion seen in July and only a little below the $4.23 billion reported in June.

Poised to pass 2016

Year-to-date issuance through Oct. 6 is $38.63 billion in 10,245 deals compared to $28.70 billion in 6,710 deals for the same period of last year. That puts this year’s pace 34.6% ahead of last year’s.

This year is now on the verge of passing the $38.72 billion seen for 2016 as a whole.

Another month like September will put it ahead of 2014’s total of $42.56 billion and the year looks set to end up easily ahead of the $44.12 billion figure seen for 2015. Even the all-time record, $50.52 billion in 2008, now looks within reach.

Meanwhile, this year is already by far the biggest in terms of number of deals brought to market, reflecting the proliferation of small offerings.

Last year was the previous record holder, with 9,363. This year is the first to break through the 10,000 mark.

UBS brings biggest deal

Last week’s biggest deal came from UBS AG, London Branch, a $55.68 million offering of capped leveraged notes linked to the S&P 500 index.

Number two was $37.85 million of capped leverage notes linked to a basket of international indexes from Canadian Imperial Bank of Commerce.

Unusually for recent times, a commodities deal was in third place. Citigroup Global Markets Holdings Inc. brought $33.84 million of securities linked to the S&P GSCI Total Return index. Commodity-linked deals have been almost non-existent this year, totaling just $286 million, or 0.74% of total volume.

The fourth biggest deal was another UBS offering, this time $18.01 million of digital notes linked to the Euro Stoxx 50 index.

Fifth was Credit Suisse AG, London Branch with $15.43 million of trigger autocallable contingent yield notes tied to the SPDR S&P Regional Banking ETF.

Over recent weeks, deals based on European market measures have been prominent. Last week, for example, five of the top 10 deals by size were of this kind. The Euro Stoxx 50 index has been especially popular.

This week’s top offerings suggest a change in the trend.

© 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.