Filter by Categories
Accounting
Banking

Derivatives




Boosted Range Accrual Note


A range note that pays the holder an extra coupon for each period when the underlying index moves above a specified strike level. This note can be viewed as a range note combined with a string of digital caps. Adding the digital caps will help reduce the volatility risk associated with the index (in fact, the holder, as in an ordinary note, is considered to be selling the volatility of the underlying index). Boosted range accrual notes help investors enhance their yields and provide them with protection against an upward movement of interest rates (particularly in case the cap strike coincides with the upper boundary of of range).



ABC
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*