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Power reverse dual-currency note : ウィキペディア英語版 | Power reverse dual-currency note A ''dual-currency note'' (DC) pays coupons in the investor's domestic currency with the notional in the issuer’s domestic currency. A ''reverse dual-currency note'' (RDC) is a note which pays a foreign interest rate in the investor's domestic currency. A power reverse dual-currency note (PRDC) is a structured product where an investor is seeking a better return and a borrower a lower rate by taking advantage of the interest rate differential between two economies. The power component of the name denotes higher initial coupons and the fact that coupons rise as the foreign exchange rate depreciates. The power feature comes with a higher risk for the investor, which characterizes the product as leveraged carry trade. Cash flows may have a digital cap feature where the rate gets locked once it reaches a certain threshold. Other add-on features include barriers such as knockouts and cancel provision for the issuer. PRDCs are part of the wider Structured Notes Market. == Market ==
The majority of investors are Japanese with 9 billion USD worth of notes issued in 2003 and the issued notional increasing every year thereafter up until 2008 when it sharply declined. Major participants in the market include issuers (usually Supranationals) of the notes under their Euro Medium Term Note program. Also heavily involved are PRDC swap hedgers - the major ones include JPMorgan Chase, Nomura Securities Co., UBS Investment Bank, Deutsche Bank, Goldman Sachs, Citigroup, Barclays Investment Bank, Credit Suisse, and Bank of America Merrill Lynch.
抄文引用元・出典: フリー百科事典『 ウィキペディア(Wikipedia)』 ■ウィキペディアで「Power reverse dual-currency note」の詳細全文を読む
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