Finance

Reverse Capped Bonus Certificate

June 30, 2021
Derivatives

Collateralized Debt Obligation

June 30, 2021

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A heaven-and-hell security that is reversed to the effect that its payments (redemption value) increase when the underlying exchange rate moves down, and vice versa. It is a variant on dual currency bond but with its principal redemption tied inversely to the change in the spot exchange rate over the its lifespan (from issuance to maturity).

The opposite scenario holds in a heaven-and-hell security.

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