Derivatives
Currency KIKO Option
December 30, 2022
Derivatives
Capped CMCDS
December 30, 2022

A bullet that pays no principal prior to a specified “targeted maturity date”. Thereafter, it pays monthly if the target is missed. Usually it bears short maturity (3-7 years), and as such appeals to investors who wish to reduce reinvestment risk and cannot invest in long-dated securities.

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