J.P. Morgan overtook Citi and Goldman as number one issuer in the US structured products market during Q2 2023.

Some US$26.7 billion was collected from 8,594 structured products in the second quarter of 2023 – a 2.1% decrease compared to the previous quarter and down 6.4% year-on-year (YoY).

Seventeen issuer groups were active in the quarter (Q2 2022: 18).

J.P. Morgan was the most prolific issuer during Q2. The bank captured a 17.6% share of the US market with sales of US$4.7 billion from 2,029 products (Q2 2022: US$4.5 billion from 1,913 products).

A large chunk of J.P. Morgan’s sales, at US$2.8 billion, came from 1,011 products linked to S&P 500, either on its own, or as part of a basket often also including the Russell 2000, Nasdaq 100 and DJ Industrial Average, while, despite considerable issuance, there was less demand for structures tied to its proprietary MerQube US Tech+ Vol Advantage (US$30m from 71 products) and MerQube US Large-Cap Vol Advantage (US$10m from 41 products) indices.

Citi, which was the number one issuer in Q1 2022, saw its market share fall to 13.1%, down 6.6 percentage points YoY. It gathered US$3.5 billion from 1,131 structured products, half of which were linked to the S&P 500. The bank’s main prop index was the Citi Dynamic Asset Selector 5 ER, which gathered sales of US$27m from 21 products in the quarter.

Goldman Sachs completed the top three, claiming an 11.5% market share (Q2 2022: 16.5%) from 933 products worth a combined US$ 3.1 billion. Its offering included the Buffer Autocallable Gears (36265J490) on the S&P 500, which, with sales of US$108m, was the best-selling US product of the quarter.

Morgan Stanley and Bank of America both increased their market share, albeit by less than a percentage point YoY, while that of UBS was up by 2.1 percentage points.

The biggest increase in market share was seen at Barclays: from 0.5% in Q2 2022 to 6.9% in Q2 2023.

Apart from Barclays, Scotiabank and CIBC were also new in the top 10, which saw Credit Suisse, Toronto Dominion Bank and HSBC drop out.