Fears of rising interest rates spurs switch and floored note issuance

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Concerns over future rates rises are driving demand for zero accreters

Bank of America Merrill Lynch (BAML) has privately placed €130 million of fixed-to-floating rate structured notes as appetite for interest rates products is fuelled by concerns about rising rates. The 12-year notes are called switch notes that pay 5.1% for the first three years, after which the payments switch and investors are paid the 10-year euro swap rate, floored at 4% and capped at 8%.

BAML would not comment on where the notes had been sold but London-based bankers suggested that the

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