The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Europe's retail market to get fair deal

Europe's retail investors are about to be inundated with securities that claim to put them on a par with the most prized funds.

In December, Landesbank Baden-Württemberg (LBBW) was planning to become the first AAA issuer of continuously offered bonds in Europe. LBBW was due to join Bank of America and FCE Bank, the European funding arm of Ford Motor Credit, in issuing InterNotes.

InterNotes are fixed-income instruments that investors can buy or sell in denominations of just $1,000, £1,000 or e1,000. They have an all-in fixed par price and a flexible coupon structure, so the investor can select monthly, semi-annual or annual coupon payments. The bonds are offered every week.

InterNotes were developed in the US by specialist investment bank Incapital, which is 25% owned by Bank of America.

Tidy fee With a typical bond, two or three banks cream off a tidy fee and run the book, backed by a further four or five banks acting as co-leads. With InterNotes, however, Incapital structures the product for a small fee and then puts around 300 banks into the syndicate.

As an incentive, those 300 banks earn a large fee for selling the instruments.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree