This is a popular structured product, but rather difficult to understand. Do you know how they work? If not this simple explanation shows you the benefits and risks of autocallables.
Sometimes companies need a makeover too. Find out how private equity firms can turn around the fortunes of companies that are starting to lag behind their competitors.
Cross-Currency Basis Swaps
In an attempt to stem a global banking crisis several central banks have used basis swaps to provide dollar funding for European financial institutions. Explore the financial alchemy by which these instruments transform a European bank’s euro funding into scarce dollar funding.
Sometimes bond issuers want to raise capital in foreign countries. Learn to tell your Dim Sum bond from your Bulldog bond.
Callable and Puttable bonds
Issuers may want to re-finance their debt if the level of interest rates falls. Learn how options can be built into bonds to make this possible.
Contingent Convertibles (CoCo bonds)
This type of bond is popular with regulators because it converts into equity just as a company’s capital ratio drops below a threshold. Click on the link to learn more about “programmed de-leveraging”.
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