Sales of structured products in the US market reached an all-time high in August.
Some US$13.7 billion was collected from 3,622 newly issued structured products in August 2023 – the highest monthly sales volume recorded in the US market since the launch of the SRP US database in April 2006.
Sales volumes increased by 34% compared to August last year and by 35% month-on-month (Jul 2023: US$10.1 billion). The previous high was seen in September 2022, when US$12.4 billion was gathered from 3,268 products.
The top issuers in August included J.P. Morgan, Barclays Bank and Citigroup with a market share of 19.5%, 12.8%, and 12%, respectively. Goldman Sachs captured 11.8% of the US market while Bank of America completed the top five (6.6%).
Barclays was the manufacturer behind the best-selling product of the month. The bank’s Synthetic Convertible Notes (06741W7A2) on the Class A common stock of Alphabet achieved sales of US$450m. It pays an annual coupon of four percent, whilst at maturity, providing the share closes at or above 132% of its starting price, it offers 75.6% participation in the rise of the underlying.
The 1,312 products linked to an index basket sold a combined US$4.3 billion – the equivalent of a 31.2% market share, and up 10.8 percentage points year-on-year (YoY). Compared to July 2023, sales of index basket-linked structures increased by US$1.4 billion.
Nine hundred products worth US$4 billion were tied to a single index, including 561 linked to the S&P 500. Although sales volumes were up US$300m YoY, the market share for products linked to single indices decreased: from 36.5% in August 2022 to 29% in August this year.
Products linked to single stocks saw their market share increase to 13.8% - up 4.9 percentage points YoY. The 657 structures in question collected US$1.9 billion with the shares of Tesla (56 products), Nvidia (50), and Amazon (48) the most frequently used.
ETF-linked products also increased their market share (+0.90%), with the 192 products on offer during August selling slightly more than US$700m. Thirty-six percent of ETF-linked sales was invested in products linked to SPDR S&P 500 ETF Trust, with a further 17% invested in products linked to Energy Select Sector SPDR Fund.