Japanese investors rush to exit PRDC notes

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A significant number of Japanese investors that were looking at being locked into close to zero-coupon payouts for the next 30 years due to their investments in Bermudan multi-callable power reverse dual currency (PRDC) notes have managed to exit their positions, as dealers have been forced to call the notes.

The development follows a sustained rally by the dollar against the yen this year – and most notably in the past 10 weeks. This move has caught out a number of dealers, along wit