John Robert L DeLuca

查看翻譯

What are structured notes in forex markets?

Structured notes are hybrid financial products combining debt instruments with embedded derivatives tied to currency performance. Example: a note paying 5% yield if EUR/USD stays above 1.05, but converting repayment to EUR if it falls below. Institutions issue these to meet investor demand for yield with controlled risk. Benefits: customization and tailored payoffs. Risks: complexity, illiquidity, and counterparty credit risk. Retail access is limited, often via banks offering dual-currency deposits. Structured notes show how innovation transforms forex into investment products beyond trading desks, appealing to yield-seeking investors.