US wrap: Structurers deploy longer maturities to tackle low interest rates

Longer tenors are proving attractive to investors hunting for yield as low interest rates prevail in the US

Tug of war
Banks are stretching maturities as low rates make structuring problematic

As rates remain low and investors search for yield, longer-term products seem to be the solution for the US market.

At the end of last week and in the latest issuance, Wells Fargo has extended the tenor of its accelerated growth products while only managing to offer a participation rate of 125%.

The bank issued a three-and-a-half year product on September 10 that tracks the performance of the iShares MSCI Emerging Markets Index Fund. Participation is capped at 38–44% and the downside buffer is

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