Apple set to pass Libor as second most popular note underlying

“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.”

Read more in the full article here.


  1. Imagine that. Who would have think? Wonder if Cramer got wind of someone being exposed and is in liquidity hell?

    Wonder if this is treated like currency? Maybe it has a 100 to 1 leverage like the shysters have in the currency’s rakers.

    This is ire gambling. Why does the SEC allow it?

    Like the other person said, you learn something everyday.

    I know I bash MDN a lot, but I really have to thank them. I wonder what other derivative plays these shysters have that the government I turning a blind eye to?

    1. My hour of learning has taught me this so far:

      1. The government doesn’t turn a blind-eye
      2. The notes used by the big boys are actually quite good at meeting their established goals, that being to limit downside while not limiting upside.
      3. The notes offered to individual investors are shite, and the SEC and FINRA have warned those individuals to exercise extreme caution when considering one.

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