“Sales of U.S. structured notes tied to the share price of Apple Inc. (AAPL) climbed to $1.47 billion this year, on the verge of overtaking the London interbank offered rate as the second most commonly linked underlying,” Kevin Dugan reports for Bloomberg.
“Investors bought $357.2 million of notes in 104 offerings tied to the world’s most valuable company in October, the biggest sales month since January 2010, according to data compiled by Bloomberg,” Dugan reports. “That compares with $19 million in two deals linked to Libor, or the rate that banks say they can borrow in dollars from each other, which totals $1.473 billion for the year, or about $2 million more.”
Dugan reports, “Structured notes tied to Apple promise more appealing returns with Libor close to a 15-month low as the Federal Reserve holds benchmarks rates within a historically low range of zero to 0.25 percent. While this year’s best-selling note linked to the Cupertino, California-based company risks losses if the share price plummets, the annual potential yield is 12 percentage points more than for the largest Libor-tied security.”
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