A new callable step-up note from Goldman Sachs has raised $97m, placing it just short of the top ten best selling products so far in 2011.
The note, which struck on 18 March, offers an initial quarterly coupon of 4% pa for the first three years, which then steps us to 5%, 6% and 7.25% pa over the course of the 9.75-year term. The product follows a callable fixed-rate note for which Goldman Sachs raised a year-so-far record of $511m.
Callable notes with step-up features have been popular with investors seeking more generous income-producing investments in the continuing low interest rate environment.
Last year, Morgan Stanley broke records when it raised $1.1bn for a callable step-up note that struck on 26 August. Three other Morgan Stanley notes, one in June 2010 and two in September, sold $625m, $555m and $500m, respectively. The four were among the five best selling structured products of the year. Rounding out 2010's top five notes was a Goldman Sachs callable note, which sold $506m.
This product is available on the US database.