A structured note (and a type of range accumulation notes) that allows investors to particularly capitalize on their ability to forecast short-term rates. The accrual index ratio constructed during the short-term period is multiplied by the reference index rate plus a given spread (a number of basis points) on each reset date. The note’s rate will change with market rates, but an investor with a good forecasting ability can lock in a better rate over the life of the note.
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Comments