Cohen & Company of New York has just closed the marketing period for its first US structured note.
The ten year structure issued by The Royal Bank of Scotland has an uncapped call/callable structure and pays a fixed 6% coupon for the first year, followed by the three month Libor rate plus 125 basis points for years two through ten, subject to a 2% minimum coupon. The minimum investment was $1,000.
Cohen & Company has been building up its fixed-income distribution capabilities including structured investments and has hired several former Pali Capital executives this year to lead the charge. In addition, just last month the firm acquired privately-held distribution firm JVB Financial Holdings of Boca Raton, Florida for $16.6m. JVB has been distributing both structured notes and structured certificates of deposit since 2006.
A Cohen & Company executive declined to comment on the firm's structured investments initiative, pending the expected fourth quarter closing of the acquisition of JVB.