(Corrects amount of ING note in second paragraph.)
Bank of America Merrill Lynch sold $100 million of structured notes that will initially reward investors based on the performance of a similar note issued last year by ING Groep NV.
The $100 million credit-linked note is tied to a 6.51 billion-ruble ($194 million) ING security, which itself is linked to a bond from OAO Gazprombank, Russia’s third-biggest lender, until December 12. After that Bank of America’s note is tied to a basket of undisclosed credits.
Andrew Todd, a Bank of America spokesman in London, declined to comment on the note.
Credit-linked notes are securities with derivatives tied to the risk of a company or country’s debt and offer higher yields and tailored maturities that may not be available in the bond market. Investors typically suffer losses if there’s a default for either the bank issuing the note or the reference entity.
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