ROME: Sales of certificates in Italy climbed to an all-time high of 8.16 billion euros ($9.3 billion) in 2014, a year after breaking the previous record, as investors embraced structured products as an alternative to low-yielding bonds.
Banks sold 29 percent more notes last year than in 2013, when the previous sales record of 6.33 billion euros was set, according to data from the Italian Association of Certificates and Investment Products. More than half of the notes sold in the fourth quarter of 2014 protected investors’ principal, while equities remained the most popular underlying linked asset.
Structured-product sales across Europe rose 3.4 percent to $63.3 billion last year, according to data compiled by Bloomberg, as buyers searched for yield amid low interest rates and forced banks to add complexity and extend maturities.
That came as regulatory attention intensified, with trade groups moving to adopt transparency measures ahead of strict European rules set to take effect in 2017.
Low interest rates and low yields drove investors to the products,” said Marcello Chelli, head of listed products for Italy at Societe Generale SA in Milan.
