Credit Suisse was the surprise package in a quarter that saw a huge demand for interest-linked products.

Some JPY261 billion (US$1.8 billion) was collected from 181 structured products in the third quarter of 2022 – a decrease of 16% in sales volume compared to the prior year period (Q3 2021: 312 billion from 204 products).

Average sales of JPY1.44 billion per product were down six percent compared to Q3 2021 when products sold on average JPY1.53 billion.

There was a huge surge in demand for interest-linked products, which were non-existent throughout 2021, but claimed more than 25% of the market in Q3 2022, just behind structures on index-baskets (29%).

Fifteen issuer groups, a mixture of local banks/securities houses, Scandinavian government funding agencies, and European/US investment banks, were active during the quarter (Q3 2021: 13).

Credit Suisse was the number one issuer in the quarter with a 16.7% share of the market.

The Swiss investment bank, which did not even make the top 10 in Q3 2021 when it held 0.9% market share, achieved sales of JPY43 billion from 17 products that were available via nine different distributors. Ninety percent of its sales volumes came from products linked to the interest rates, including 固定利付コーラブル債/Callable Interest Rate linked Bond M20270726, which, with sales of JPY1.9 billion, was the best-selling product in Q3.

In Second, Mitsubishi UFJ – last year’s leading issuer – saw its market share drop to 14.9% (from 23% in Q3 2021). Its products were issued through three different entities – MUFG Securities EMEA, Mitsubishi UFJ Securities International, and Mitsubishi UFJ Trust & Banking – that collected a combined JPY38.8 billion from 21 structures.

Barclays and Morgan Stanley both more than doubled their market share in Q3 2022. The former claimed 12.7% of the market (Q3 2021: 6.3%) from selling 14 products worth JPY33.2. Most of its volumes, like Credit Suisse, came from interest-linked products.

Morgan Stanley captured 9.3% of the market – up 5.2% year-on-year. The US bank accumulated sales of JPY24.2 billion from 10 products, halve of which were linked to FX-rates.

BNP Paribas completed the top five with a nine percent share of the market (Q3 2021: 10.7%). It was the most active issuer by issuance, with 22 products worth JPY23.5 billion. Nineteen of its products were linked to the local Nikkei 225.

Municipality Finance, HSBC, Société Générale, SEK and Sumitomo Mitsui Trust also made the top 10.