Market snapshot
Tim Mortimer of Future Value Consultants reviews the US and UK new issuance market for May, and finds that leveraged return notes remain the most highly sought-after investment in the public markets
Leveraged return notes accounted for almost half of the structured products new issuance in the US public markets in May, accounting for 49% and $803 million of notional sold. The products were of a longer term than many others sold in May, with an average tenor of two years. Reverse convertibles, which made up 13% of new issuance, generally had maturities of around one year.
These notes have been the most popular in the US over the past 12 months, which is remarkable in the uncertain financial
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