Investor Interest Shifts From Equity Structured Notes Toward Fixed Income, Says Crédit Agricole CIB

Crédit Agricole Corporate and Investment Bank is seeing a notable shift in clients, including institutions, wealth managers and family offices, seeking an equity-like payoff in the fixed income market. Investors are applying structured notes, such as autocallables and reverse convertible bonds on fixed income underlyings, such as Government Bonds, SOFR or other Rates indices, Sebastien Lafosse, director and head of cross-asset investment solutions sales at Crédit Agricole CIB in New York, said that clients want to monetize volatility in the rates market using a structure they are already familiar with in the equities space.